A recent analyst initiation has cast a spotlight on a fundamental challenge for pharmaceutical giant Pfizer. While the company’s recent quarterly performance exceeded expectations, concerns are growing over a wave of impending patent expirations on several of its most significant drugs.
Analyst Downgrade Highlights Structural Concerns
Investment bank Barclays assumed coverage of Pfizer’s stock on February 20, assigning it an “Underweight” rating alongside a price target of $25. The bank’s cautious stance is rooted not in short-term performance but in structural headwinds. Analysts pointed specifically to major patent cliffs on the horizon and the ongoing need for the company to strengthen its balance sheet.
Market observers identify several blockbuster medications whose intellectual property protection is scheduled to lapse between 2026 and 2030. This list includes the blood thinner Eliquis, the heart drug Vyndaqel, and the cancer treatment Xtandi. For pharmaceutical firms, such losses of exclusivity represent a critical inflection point, as they open the door to lower-cost generic competitors, potentially eroding both pricing power and market share.
Strong Quarterly Results Offer Temporary Respite
This analyst pessimism contrasts with an operational picture that remains robust in the near term. For the fourth quarter of 2025, Pfizer posted results that beat market forecasts. The company reported revenue of $17.6 billion, surpassing estimates by approximately 6%. Earnings per share came in at $0.66, about 16% above consensus.
This very dichotomy, however, lies at the heart of the current investor debate. Solid quarterly figures do not resolve the underlying patent issue; they merely provide a temporary buffer. Reflecting these concerns, Pfizer’s share price recently showed weakness, closing at €22.62 on Friday, a decline of 0.85%.
Should investors sell immediately? Or is it worth buying Pfizer?
Strategic Moves and Legal Developments
To address future revenue gaps, Pfizer is actively pursuing acquisitions and bolstering its development pipeline. In November 2025, reports indicated the company outbid Novo Nordisk to acquire Metsera. The transaction, valued at up to $10 billion, is designed to secure clinical candidates in the lucrative obesity drug market. Part of the funding for this deal was secured through a $6 billion bond issuance placed in late 2025.
Positive clinical developments are also emerging. The BREAKWATER study demonstrated that the drug Braftovi showed promising data in progression-free survival for treating metastatic colorectal cancer. An upcoming FDA decision on the approval of this treatment regimen is viewed as the next key milestone.
Separately, a legal dispute in the mRNA sector indirectly involves Pfizer. On February 20, BioNTech filed a lawsuit against Moderna in Delaware. The complaint alleges that a new Moderna vaccine infringes on mRNA design technology patents that are also utilized in Comirnaty, the COVID-19 vaccine developed jointly by BioNTech and Pfizer.
Ultimately, the skepticism voiced by Barclays centers less on Pfizer’s past performance and more on the period following the upcoming patent expirations. The critical question is whether the company’s pipeline and acquisition strategy can generate new revenue swiftly enough to offset the impending losses.
Ad
Pfizer Stock: Buy or Sell?! New Pfizer Analysis from February 22 delivers the answer:
The latest Pfizer figures speak for themselves: Urgent action needed for Pfizer investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 22.
Pfizer: Buy or sell? Read more here...
