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Today's Featured News 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, leading the S&P 500's 11 sectors over the past three months with an 11.55% gain. Unfortunately for some investors, that 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 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. Recently, President Trump decided to kill the coin, for good reason. It now costs 4 cents to make a single penny. Which means the government is losing 3 cents on every one it mints.
But the truth behind Trump's decision may be stranger than you think. What's really happening and what it could mean for your money Despite Pfizer making headlines on Nov. 13 with its $10 billion acquisition of obesity biotech Metsera, the stock has risen only 0.23% since the deal closed. 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 offset waning revenue from mRNA-based COVID-19 vaccines. 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 currently in early-stage development. The drug is designed to work similarly to Wegovy, the game-changing weight loss injection from competitor Novo Nordisk (NYSE: NVO). News of a yet-to-be-approved pill may not move the stock in the short term. Still, the agreement signals Pfizer's commitment and momentum in the obesity treatment market. The agreement calls for Pfizer to pay 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 toward approval, along with royalty payments on any future sales. Those milestone payments are contingent on YaoPharma successfully navigating the weight loss pill through phase one trials, after which Pfizer will take control of later-stage development. Pfizer also plans to conduct combination studies — currently in mid-stage development — using the Chinese firm's pill together with Pfizer's own GIP-targeting therapy, a strategy Eli Lilly has pursued 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 Pfizer's executives are pursuing a prominent, long-term position in the GLP-1 and broader obesity treatment market. Pfizer has shown a willingness to invest roughly $10.1 billion in the past month alone as it targets a rapidly growing industry. Market research firm Grand View Research forecasts the GLP-1 weight loss drug market will grow at a compound annual growth rate (CAGR) of 18.54% from 2025 to 2030 — expanding from under $14 billion at the start of this year to an estimated $48.84 billion by 2030. Grand View Research also found North America accounts for more than 75% of the GLP-1 agonists market. While alternatives such as lifestyle changes and bariatric surgery exist, GLP-1 drugs remain the preferred option among 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 disappointed long-term holders with a decline of more than 31% over the past five years. Much of that drop reflects a sharp fall in COVID-vaccine–related revenue: revenue growth fell from more than 95% at the end of 2021 to a decline of over 41% by the end of 2023. Last year, Pfizer registered a modest rebound, with revenue increasing nearly 7%. At the same time, the stock's dividend has softened some investors' concerns. Pfizer remains a strong dividend payer with a current yield of 6.65% — or $1.72 per share annually. The dividend has increased for 16 consecutive years, making the stock popular with income investors, although its 100% payout ratio has raised some concerns. For investors focused on income and willing to take a speculative position on the near- and mid-term prospects of the prescription weight loss market, Pfizer provides steady income alongside exposure to the GLP-1 industry. Growth-focused investors, however, may be less patient. Analysts' average 12-month price target implies roughly 10% potential upside from the stock's current price and carries a consensus Hold rating. Meanwhile, short interest has been steadily rising as the stock continues to attract bears. Currently, about $3.58 billion worth of the float is shorted — nearly 84% more than PFE's short position at the end of January 2025.
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