Investing in Pfizer Stock (PFE)

What you need to know about investing in Pfizer

Pfizer Inc. (PFE) is a global pharmaceutical company focused on preventing illnesses, and developing treatments and cures for a range of diseases. The company generates the majority of its revenue through the manufacture and sale of biopharmaceutical products. Pfizer's business is organized around the following therapeutic areas: internal medicine; oncology; hospital; vaccines, inflammation and immunology; and rare disease.

The company traces its origins to the founding of Charles Pfizer & Co. in Brooklyn, N.Y., in 1849 by Charles Pfizer and Charles Erhart. The company expanded during the late 1800s and early 1900s, remaining a privately held company until June 1942, when it offered shares of its common stock to the public for the first time. It was the first mass producer of the "miracle drug" penicillin in the 1940s and was generating more than a billion dollars in sales by the early 1970s. Pfizer has become one of the biggest pharmaceutical companies in the world with a market capitalization of $251.3 billion, as of Nov. 3, 2021.

Pfizer's headquarters are in New York City. Albert Bourla is the pharmaceutical giant's current chief executive officer (CEO). Pfizer is classified as a member of the S&P 500 healthcare sector and operates within the biotechnology and pharmaceutical industry. Pfizer's main competitors include Merck & Co. Inc. (MRK), Switzerland-based Roche Holding AG (RHHBY), and Eli Lilly and Co. (LLY). Pfizer reported net income attributable to its common shareholders of $9.6 billion on $41.9 billion in annual revenue in its 2020 fiscal year (FY).

Key Takeaways

  • Pfizer develops, manufactures, and distributes biopharmaceutical products to treat and cure a range of diseases.
  • Some of its main rivals include Merck & Co. Inc. (MRK), Switzerland-based Roche Holding AG (RHHBY), and Eli Lilly and Co. (LLY).
  • Pfizer posted $9.6 billion in net income attributable to its common shareholders on revenue of $41.9 billion in FY 2020.
  • Pfizer's Q3 FY 2021 earnings and revenue, fueled by sales of its COVID-19 vaccine, surpassed analysts' expectations.

Recent Developments

  • On Nov. 2, 2021, Pfizer reported financial results for Q3 FY 2021 ended Oct. 3, 2021. Both its adjusted earnings per share (EPS) and revenue beat analysts' consensus estimates. Adjusted EPS rose 129% on revenue growth of 134% compared to the year-ago quarter. It was the fastest pace of quarterly revenue growth in at least the past three years and was primarily driven by sales of Pfizer's COVID-19 vaccine. (See Q&A below for more detail.)
  • On Oct. 29, 2021, the U.S. Food and Drug Administration (FDA) authorized the emergency use of Pfizer's Covid-19 vaccine, which was co-developed with German-based BioNTech SE (BNTX), for use by children 5 through 11 years of age. The FDA said that the vaccine for this age group is to be administered as a two-dose primary series, 3 weeks apart. This is a lower dose than for individuals aged 12 years and older. (See Q&A below for more detail.)

What's Happening with the Pfizer COVID-19 Vaccine?

In 2020, Pfizer co-developed with BioNTech a vaccine against COVID-19, the virus whose rapid spread prompted the World Health Organization to declare a global pandemic in March 2020. On Dec. 11, 2020, the Pfizer-BioNTech vaccine became the first COVID-19 vaccine to receive emergency use authorization (EUA) from the U.S. Food and Drug Administration (FDA). The vaccine was approved for emergency use for individuals 16 years of age and older. On May. 10, 2021, the FDA expanded the EUA for the Pfizer-BioNTech vaccine to include adolescents from the age of 12 through the age of 15.

The FDA gave the vaccine full approval on Aug. 23, 2021, after reviewing the biologics license application (BLA) submitted by Pfizer and BioNTech. The two companies completed their submission of the BLA in May 2021. It was the first COVID-19 vaccine to receive full approval from the FDA. It is now being marketed under the name Comirnaty.

On Sept. 22, 2021, the FDA amended the EUA for the vaccine, approving it for use as a single booster dose administered at least six months after completion of the initial doses for the following individuals: those 65 years of age and older; those 18 through 64 years of age at high risk of severe COVID-19; and those 18 through 64 years of age who are frequently exposed to COVID-19 to the extent that it puts them at risk of suffering serious complications.

On Oct. 29, 2021, the FDA extended the EUA for the vaccine to include children between the ages of 5 and 11.

FAQs

Has Pfizer (PFE) ever split its stock?

Pfizer has split its stock a total of 5 times:

  • July 1, 1983: a 2-for-1 split.
  • April 1, 1991: a 2-for-1 split.
  • July 3, 1995: a 2-for-1 split.
  • July 1, 1997: a 2-for-1 split.
  • July 1, 1999: a 3-for-1 split.

Does Pfizer (PFE) pay a dividend?

Yes, Pfizer pays a regular quarterly cash dividend of $0.39 per share.

How many shares of Pfizer (PFE) stock are there?

As of Aug. 9, 2021, Pfizer had 5,606,688,356 shares of voting common stock outstanding.

Who is the CEO of Pfizer?

Albert Bourla, who has been with Pfizer for more than 25 years, is currently the company's CEO and chairman. Before assuming the CEO position in January 2019, he was chief operating officer (COO) starting in January 2018. Between February 2016 and December 2018, Bourla was group president of Pfizer's Global Vaccines, Oncology, and Consumer Healthcare business. He was president and general manager of the company's Established Products business from 2010 to 2013. Bourla served in a number of other roles between 1993, when he joined the company, and 2010.

What drugs make Pfizer the most money?

Pfizer's top 5 selling drugs worldwide in Q3 FY 2021 were:

  • Comirnaty (vaccines), used to vaccinate against COVID-19, with nearly $13.0 billion in revenue from direct sales and alliance revenues.
  • The Prevnar family (vaccines), used to vaccinate against pneumococcal diseases, with more than $1.4 billion in revenue.
  • Ibrance (oncology), used to treat certain breast cancers, with nearly $1.4 billion in revenue.
  • Eliquis (internal medicine), used to treat nonvalvular atrial fibrillation, deep vein thrombosis, and pulmonary embolism, with over $1.3 billion in revenue from direct sales and alliance revenues.
  • Xeljanz (inflammation & immunology), used to treat certain types of arthritis, with approximately $0.6 billion in revenue.

Article Sources

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