PFE - Embedded Expectations Analysis - 2021 05 27
Pfizer Inc. (PFE:USA) currently trades below historical averages relative to UAFRS-based (Uniform) earnings, with a 10.0x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may be concerned about declining vaccination rates, the sustainability of COVID-19 vaccine sales, and pricing headwindsSpecifically, management may lack confidence in their ability to improve U.S. Ibrance revenues, secure additional vaccine supply agreements, and enhance the efficacy of their flu vaccines. Furthermore, they may have concerns about declining vaccination rates, the negative effect of recent price reforms, and the long-term impact of COVID-19 vaccine sales on their revenue and gross margins. Moreover, management may lack confidence in their ability to prove the efficacy and safety of the COVID-19 vaccine in children, extend the vaccine's life span to 6 months in a normal refrigerator, and increase the immunogenicity of their vaccines through boosters. In addition, they may be concerned about the sustainability of the FDA's Emergency Use Authorization, the potential of their 20-valent pneumococcal conjugate vaccine for adults, and the pace of recovery of elective diagnostic procedures. Finally, management may lack confidence in their ability to advance their business pipeline and continue achieving significant clinical, regulatory, and commercial milestones
Pfizer is a research-based biopharmaceutical company. The company is engaged in discovering, developing, manufacturing and distributing of healthcare products, including medicines and vaccines. The company manages its commercial operations through three businesses: Pfizer Biopharmaceuticals Group, which includes Oncology, Inflammation and Immunology, Rare Disease, Hospital, Vaccines and Internal Medicine business units, as well as a hospital business unit; Upjohn, which includes the company's solid oral dose brands such as Lyrica, Lipitor, Norvasc, Celebrex, Viagra, and certain generic medicines; and Consumer Healthcare, which is an over-the-counter medicines business.
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