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Today's Exclusive News Pfizer Adds to Its Big Bet on Weight Loss DrugsBy Jordan Chussler. Article Published: 12/16/2025. 
At a Glance - The health care sector has led the S&P 500 over the three months, but Pfizer has lagged of late, slipping 5% since the start of October.
- As the Big Pharma company continues to struggle to replace COVID-19 vaccine revenue, it is heavily learning into the semaglutide and GLP-1 weight loss drug trend.
- Last week, the company signed a $2.1 billion licensing agreement with a Chinese pharma company to develop its early-stage weight loss pill.
Health care stocks have been on a run lately, leading the S&P 500's 11 sectors over the past three months with a gain of 11.55%. Unfortunately for some investors, that recent rally has not included all of the Big Pharma mainstays. Pfizer (NYSE: PFE), the maker of Chantix, Eliquis, and Paxlovid, has seen its shares slide 5% since the start of October. By comparison, other mega-cap pharmaceutical companies such as Johnson & Johnson (NYSE: JNJ), Regeneron Pharmaceuticals (NASDAQ: REGN), and Eli Lilly (NYSE: LLY) are up nearly 14%, 24%, and 25%, respectively, over the same time frame. Artificial intelligence is reshaping the economy at an unprecedented pace — creating opportunity for some, while raising serious questions for others.
In a new documentary, one researcher examines how rapid AI adoption is affecting jobs, wealth distribution, and long-term economic stability. The presentation explores both the risks of this transition and how a small group of individuals are preparing for — and benefiting from — the shift. Watch the free documentary here And despite Pfizer making headlines on Nov. 13 after acquiring obesity biotech Metsera in a $10 billion deal, the stock has only mustered a 0.23% gain since then. The nearly 177-year-old biopharma company is once again looking to expand its role in the weight loss drug market, with management and shareholders hoping that doing so can help it recover revenue lost after demand for mRNA-based COVID-19 vaccines waned. Pfizer Looks to Gain Market Share After Enormous Deal With YaoPharma On Tuesday, Dec. 9, Pfizer struck a $2.1 billion licensing deal with China's YaoPharma to develop a GLP-1 weight loss pill that is in early-stage development. The drug works similarly to Wegovy, the game-changing injectable from competitor Novo Nordisk (NYSE: NVO). News of a yet-to-be-approved weight loss pill may not move the stock in the short term, but it does reflect the company's commitment and momentum in the obesity treatment market. The agreement includes Pfizer paying a $150 million upfront fee to YaoPharma's parent company, Shanghai Fosun Pharmaceutical, which has an $8.4 billion market cap. Additionally, Pfizer could pay YaoPharma up to $1.94 billion in milestone payments if the drug advances as expected, as well as royalties on sales if and when it is approved. Those milestone payments are contingent on YaoPharma successfully navigating the weight loss pill through phase one trials, after which Pfizer would take control of later-stage development. Pfizer also plans to conduct combination studies—currently in mid-stage development—using the Chinese pharma's pill alongside its own GIP gut hormone receptor, a strategy Eli Lilly has adopted with its weight-loss drug Zepbound and diabetes drug Mounjaro by targeting both GLP-1 and GIP. Pfizer Is Positioning Itself for the Future of the Weight Loss Drug Market The deal underscores how aggressively the company's executives are pursuing a long-term position in the GLP-1 and broader obesity treatment market. Pfizer's leadership has shown it is willing to commit significant capital in recent deals as it targets a rapidly growing industry. Forecasts from market analysis firm Grand View Research suggest the GLP-1 weight loss drug market is expected to grow at a compound annual growth rate (CAGR) of 18.54% from 2025 to 2030, rising from less than $14 billion at the start of this year to an estimated $48.84 billion by 2030. Grand View Research found that North America accounts for the largest revenue share, with more than 75% of the GLP-1 agonists market. While alternative obesity interventions exist—including lifestyle changes and bariatric surgery—GLP-1 drugs remain the preferred option for many physicians and patients. Patient Investors Can Enjoy PFE's Sizable Dividend Shareholders are hoping Pfizer's foray into the weight loss drug market proves fruitful after the stock has declined more than 31% over the past five years. Much of that drop stems from falling COVID-19 vaccine sales, which caused revenue growth to contract sharply from the peak levels seen in 2021. Last year, Pfizer's revenue rebounded modestly, rising nearly 7%. At the same time, the stock's yield has offset some investor concerns. Pfizer remains a strong dividend payer with a current yield of 6.65%—or $1.72 per share annually. That payout has increased for 16 consecutive years, making the stock a favorite among income investors despite its roughly 100% dividend payout ratio, which has raised some eyebrows. For investors focused on income and willing to take a speculative position on the near- and mid-term prospects of the prescription weight loss drug market, Pfizer will continue to provide yield while offering exposure to the GLP-1 industry. However, growth-focused investors may be less patient if the company posts another year of lackluster performance. Analysts' average 12-month price target implies a little more than 10% potential upside from the stock's current price, alongside a consensus Hold rating. Meanwhile, short interest has been steadily rising as the stock continues to attract Wall Street bears. Currently, about $3.58 billion worth of the float is shorted—or nearly 84% more than PFE's short position at the end of January 2025.
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