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Just For You Pfizer Adds to Its Big Bet on Weight Loss DrugsWritten by Jordan Chussler. Published 12/16/2025. 
Key Points - 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 lifted all of the Big Pharma mainstays. Pfizer (NYSE: PFE), the maker of Chantix, Eliquis and Paxlovid, has seen its shares slide about 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 period. "That's impossible with memecoins"—until they proved it
Over 20 memecoins identified early. Over 20 massive winners. Now they've identified a brand-new memecoin triggering the same signals as their previous winners. Same patterns. Same setup. Same potential for explosive gains. Click here to see more 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 push helps offset waning demand for mRNA-based COVID-19 vaccines. Pfizer Looks to Gain Market Share After Major 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 is designed to work similarly to Wegovy, the game-changing injectable from competitor Novo Nordisk (NYSE: NVO). News of a yet-to-be-approved pill may not move the stock in the short term, but the agreement underscores Pfizer's commitment and momentum in the obesity treatment market. Under the deal, Pfizer will pay a $150 million upfront fee to YaoPharma's parent, Shanghai Fosun Pharmaceutical, which has an $8.4 billion market cap. Pfizer could also pay up to $1.94 billion in milestone payments if the program advances as expected, in addition to royalties on sales if the drug reaches the market. Those milestone payments are contingent on YaoPharma successfully advancing the weight-loss pill through Phase I trials, after which Pfizer will take control of later-stage development. Pfizer also plans to conduct combination studies, currently in mid-stage development, using YaoPharma's pill alongside its own GIP receptor agonist—a strategy similar to Eli Lilly's approach with Zepbound and Mounjaro that targets both GLP-1 and GIP. Pfizer Is Positioning Itself for the Future of the Weight-Loss Market The deal highlights how aggressively Pfizer's executives are pursuing a more prominent, long-term role in the GLP-1 and broader obesity treatment market. Over the past month the company has committed roughly $10.1 billion toward that effort, signaling how much it is betting on a rapidly growing industry. Forecasts from market analysis firm Grand View Research suggest the GLP-1 weight-loss drug market will grow at a compound annual growth rate (CAGR) of 18.54% from 2025 to 2030, rising from under $14 billion at the start of this year to about $48.84 billion by 2030. Grand View Research found North America accounts for the largest revenue share, representing more than 75% of the GLP-1 agonists market. While alternatives such as lifestyle interventions and bariatric surgery exist, 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 push into the weight-loss market pays off after the stock has handed loyal investors a loss of more than 31% over the past five years. Much of that decline stemmed from reduced COVID vaccine sales, which drove the company's revenue growth from more than 95% at the end of 2021 to a decline of over 41% by the end of 2023. Last year, Pfizer rebounded modestly with roughly a 7% increase in revenue. The stock's dividend has helped offset some investor concerns: Pfizer remains a strong dividend payer with a current yield of 6.65% (about $1.72 per share annually). That payout has increased for 16 consecutive years, making the stock attractive to income investors despite a roughly 100% payout ratio that gives some investors pause. For investors willing to accept limited near-term growth and who are bullish on the prescription weight-loss market, Pfizer can provide income while serving as a speculative position in the GLP-1 space. Growth-focused investors, however, may be less patient. Analysts' average 12-month price target implies a little more than 10% upside from the current price, accompanied by a consensus Hold rating. Meanwhile, short interest has been climbing as the stock attracts more skeptics. Currently, about $3.58 billion of the float is shorted—nearly 84% higher than PFE's short position at the end of January 2025.
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