Pfizer “shows its claws”: between litigation and the search for a new boost
By Ion Jauregui – Analyst at ActivTrades
Pfizer (NYSE: PFE) is back in Wall Street’s spotlight after filing a lawsuit against Metsera (NASDAQ: MTSR) and Novo Nordisk (CPH: NOVOb), accusing them of breaching a merger agreement and acting in bad faith. The pharmaceutical giant, which had already obtained early regulatory clearance in the U.S., maintains that its deal with Metsera remains valid and seeks to block the biotech from accepting Novo’s rival offer. The dispute opens a new chapter in the fierce battle for the highly profitable obesity treatment market.
The fundamental front: pressure to reinvent itself
After the boom in vaccine and antiviral revenues during the pandemic, Pfizer is going through a readjustment phase. Its latest results show annual revenue of around $63.8 billion, with a net profit of about $10.7 billion, while its operating margin stands near 17%. However, the decline in Paxlovid and Comirnaty sales has exposed its dependence on the COVID segment.
The company’s expansion strategy through acquisitions — such as the failed Metsera deal, if the lawsuit does not prevail — is key to diversifying its portfolio. The biotech firm is seen as a valuable asset in the obesity drug market, a segment dominated by Novo Nordisk and Eli Lilly with blockbuster products like Wegovy and Mounjaro.
In terms of valuation, Pfizer trades at a P/E ratio of 13, a relatively low level compared with peers, reflecting market skepticism but also some appeal for value investors. Its balance sheet remains solid, with a moderate debt-to-equity ratio (0.65×) and a stable dividend policy offering a yield close to 6% annually.
Technical analysis (Ticker AT: PFE.US)
From a technical standpoint, Pfizer’s stock is trading around $24.6, moving sideways throughout 2025. The price remains near its current control point area, while moving averages indicate the possible start of a bullish trend.
Key levels to watch are $24.16 and $23.23 as short-term supports, with the next major trend support located at $21.72. A sustained breakout above $26.11 could push prices toward this year’s highs at $27.69, with further resistance levels at $28.43 and $29.47. A confirmed break above the $27 zone would reinforce this bullish scenario. Conversely, losing the mentioned support levels could open the door to new annual lows.
The RSI stands at a neutral 48.33%, while the MACD continues to show a slightly negative bias. The ActivTrades US Market Pulse indicator sits in a neutral-risk zone, suggesting that the market currently reflects this sideways consolidation phase.
Outlook
Pfizer’s lawsuit could reshape its strategic future: if the company manages to uphold the Metsera agreement, it would strengthen its pipeline and its position within the metabolic segment. However, the legal process could be prolonged, adding short-term uncertainty.
Pfizer is “showing its claws” at a critical juncture — caught between the pressure to reinvent its business and the need to prove to investors that its best medicine remains its ability to adapt.
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
By Ion Jauregui – Analyst at ActivTrades
Pfizer (NYSE: PFE) is back in Wall Street’s spotlight after filing a lawsuit against Metsera (NASDAQ: MTSR) and Novo Nordisk (CPH: NOVOb), accusing them of breaching a merger agreement and acting in bad faith. The pharmaceutical giant, which had already obtained early regulatory clearance in the U.S., maintains that its deal with Metsera remains valid and seeks to block the biotech from accepting Novo’s rival offer. The dispute opens a new chapter in the fierce battle for the highly profitable obesity treatment market.
The fundamental front: pressure to reinvent itself
After the boom in vaccine and antiviral revenues during the pandemic, Pfizer is going through a readjustment phase. Its latest results show annual revenue of around $63.8 billion, with a net profit of about $10.7 billion, while its operating margin stands near 17%. However, the decline in Paxlovid and Comirnaty sales has exposed its dependence on the COVID segment.
The company’s expansion strategy through acquisitions — such as the failed Metsera deal, if the lawsuit does not prevail — is key to diversifying its portfolio. The biotech firm is seen as a valuable asset in the obesity drug market, a segment dominated by Novo Nordisk and Eli Lilly with blockbuster products like Wegovy and Mounjaro.
In terms of valuation, Pfizer trades at a P/E ratio of 13, a relatively low level compared with peers, reflecting market skepticism but also some appeal for value investors. Its balance sheet remains solid, with a moderate debt-to-equity ratio (0.65×) and a stable dividend policy offering a yield close to 6% annually.
Technical analysis (Ticker AT: PFE.US)
From a technical standpoint, Pfizer’s stock is trading around $24.6, moving sideways throughout 2025. The price remains near its current control point area, while moving averages indicate the possible start of a bullish trend.
Key levels to watch are $24.16 and $23.23 as short-term supports, with the next major trend support located at $21.72. A sustained breakout above $26.11 could push prices toward this year’s highs at $27.69, with further resistance levels at $28.43 and $29.47. A confirmed break above the $27 zone would reinforce this bullish scenario. Conversely, losing the mentioned support levels could open the door to new annual lows.
The RSI stands at a neutral 48.33%, while the MACD continues to show a slightly negative bias. The ActivTrades US Market Pulse indicator sits in a neutral-risk zone, suggesting that the market currently reflects this sideways consolidation phase.
Outlook
Pfizer’s lawsuit could reshape its strategic future: if the company manages to uphold the Metsera agreement, it would strengthen its pipeline and its position within the metabolic segment. However, the legal process could be prolonged, adding short-term uncertainty.
Pfizer is “showing its claws” at a critical juncture — caught between the pressure to reinvent its business and the need to prove to investors that its best medicine remains its ability to adapt.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.