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Today's Bonus Story 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 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. The first half of 2026 could be very tough for certain stocks …
In fact, our research shows the current volatility is just a preview …
Because what's coming in 2026 could be much worse.
Specifically, a radical shift is about to hit the market … Click here now — before it's too late. 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 is once again trying to expand its role in the weight-loss drug market, with management and shareholders hoping the move can help offset declining 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 an early-stage GLP-1 weight-loss pill. The drug is designed to work similarly to Wegovy, the game-changing injectable from competitor Novo Nordisk (NYSE: NVO). News of a drug that is not yet approved may not move the stock immediately, but it underscores Pfizer's commitment and momentum in the obesity-treatment market. Under the agreement, Pfizer will pay a $150 million upfront fee to YaoPharma's parent company, Shanghai Fosun Pharmaceutical, which has an $8.4 billion market cap. Pfizer could also pay YaoPharma up to $1.94 billion in milestone payments tied to development progress, in addition to royalties on sales if the drug is approved. Those milestone payments are contingent on YaoPharma successfully advancing the weight-loss pill through phase one trials, with Pfizer taking control of later-stage development. Pfizer also plans to conduct combination studies—already in mid-stage development—using YaoPharma's pill together with Pfizer's GIP receptor program, a strategy similar to what Eli Lilly has used with its weight-loss drug Zepbound and diabetes drug Mounjaro by targeting both GLP-1 and GIP pathways. Pfizer Is Positioning Itself for the Future of the Weight-Loss Drug Market The deal highlights how aggressively Pfizer's executive team is pursuing a long-term position in the GLP-1 and broader obesity-treatment market. Pfizer's leadership has shown a willingness to invest heavily in recent deals as it eyes a rapidly growing industry. Forecasts from market analysis firm Grand View Research suggest the GLP-1 weight-loss drug market could grow at a compound annual growth rate (CAGR) of 18.54% from 2025 to 2030, expanding from under $14 billion this year to an estimated $48.84 billion by 2030. Grand View Research also found North America accounts for the largest revenue share, with more than 75% of the GLP-1 agonists market. While other obesity interventions exist—such as 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 push into the weight-loss market pays off after the stock has punished loyal investors with a loss of more than 31% over the past five years. Much of that decline stems from fading COVID vaccine sales, which drove revenue growth from more than 95% at the end of 2021 to a drop of over 41% by the end of 2023. Last year, Pfizer's revenue rebounded modestly, rising nearly 7%. The stock's dividend has also eased 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 its high payout ratio. For investors willing to take a longer view and bet on the near- and mid-term future of the prescription weight-loss market, Pfizer can provide income while serving as a speculative position in the GLP-1 space. However, growth-focused investors may find another year of lackluster performance difficult to tolerate. Analysts' average 12-month price target implies a little more than 10% potential upside from the current price, with a consensus Hold rating. Meanwhile, short interest has been rising as the stock continues to attract Wall Street 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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