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Fundamental View
AS OF 03 Dec 2025Pfizer has ample financial resources, strong ability to de-lever, and adequate M&A capacity at current ratings.
Pfizer faces meaningful losses of exclusivity come the middle part of the decade. Management has guided to a ~$17 bn negative revenue impact from patent losses in 2025-30, including for drugs such as Xeljanz (2025), Eliquis (2026), Ibrance (2027), and Xtandi (2027).
Management expects to offset this impact with growth from pipeline development (+$20 bn of revenues by 2030) and business development (+$25 bn of revenues by 2030).
Business Description
AS OF 03 Dec 2025- Pfizer is a research-based, global biopharma company with focuses in immunology, metabolic disease, oncology, vaccines, neuroscience, and rare disease.
- PFE has completed a number of major acquisitions and divestitures in recent years. In 2009, the company acquired Wyeth for $68 bn, increasing its size by approximately 50%. Subsequently, PFE completed the acquisitions of Hospira ($17 bn), Biohaven ($12 bn), Arena ($6 bn), Medivation ($14 bn), Seagen ($43 bn), and Metsera ($7 bn), among others.
Risk & Catalysts
AS OF 03 Dec 2025Pfizer has been active with portfolio repositioning, executing the separations of its Consumer Healthcare and Established Brands (Upjohn) businesses in recent years. These transactions have resulted in weaker diversification and greater exposure to patent expirations.
Due to upcoming patent losses, Pfizer has been extremely active with M&A. The company completed the $43 bn acquisition of Seagen in December 2023, which resulted in well over a turn of leverage deterioration. More recently, PFE acquired Metsera for $7 bn.
Pfizer is also exploring the sale of its hospital drugs unit. The unit was formed through the $17 bn acquisition of Hospira in 2015. We suspect that divestiture proceeds would be used primarily for business development.
Key Metric
AS OF 03 Dec 2025| $ mn | Y20 | Y21 | Y22 | Y23 | Y24 | LTM 3Q25 |
|---|---|---|---|---|---|---|
| Revenue | 41,651 | 81,288 | 101,175 | 59,553 | 63,627 | 62,785 |
| Gross Profit | 33,167 | 50,467 | 66,831 | 34,599 | 45,776 | 46,081 |
| R&D | (8,709) | (10,360) | (11,428) | (10,679) | (10,822) | (10,266) |
| SG&A | (11,597) | (12,703) | (13,677) | (14,771) | (14,730) | (13,906) |
| Adj. EBITDA | 18,027 | 33,354 | 46,153 | 22,904 | 25,865 | 25,812 |
| Total Debt | 39,836 | 38,436 | 35,829 | 71,888 | 64,351 | 61,712 |
| Gross Leverage | 2.2x | 1.2x | 0.8x | 3.1x | 2.5x | 2.4x |
| Interest Coverage | 13.1x | 26.6x | 46.8x | 39.2x | 10.2x | 12.3x |
CreditSight View Comment
AS OF 03 Feb 2026We prefer Abbvie at modestly tighter spreads given its more obvious organic growth trajectory and similar net leverage. That said, we would take Pfizer over Merck (U/P) at similar spreads given the latter’s product concentration risk and more sizeable M&A needs.
Recommendation Reviewed: February 03, 2026
Recommendation Changed: September 15, 2025
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