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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 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 period. Legendary former hedge fund manager Larry Benedict built his reputation by delivering clarity in the markets when others were overwhelmed by noise. That's exactly what makes today's message so important: on this final "end of the year" deadline, Larry is laying out everything you can access for just $19. Learn this time-tested strategy today 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 such moves can help offset revenue lost as demand for mRNA COVID-19 vaccines wanes. Pfizer Looks to Gain Market Share After 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 and works similarly to Wegovy, Novo Nordisk's game-changing weight loss injection. News of a yet-to-be-approved pill may not move the stock immediately, but it underscores Pfizer's commitment to 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 up to $1.94 billion in milestone payments if the drug progresses toward approval, plus royalties on sales if and when it is approved. Those milestone payments are contingent on YaoPharma successfully advancing the weight loss pill through Phase 1 trials, with Pfizer taking control of later-stage development. Pfizer also plans combination studies—currently in mid-stage development—pairing the Chinese pharma's pill with Pfizer's own GIP gut hormone receptor approach, mirroring Eli Lilly's dual GLP-1/GIP strategy used for Zepbound and Mounjaro. Positioning for the Future of the Weight Loss Drug Market The deal highlights how aggressively Pfizer's executives are pursuing a larger, long-term role in the GLP-1 and broader obesity treatment market. In the past month, Pfizer has committed roughly $10.1 billion toward that goal as it targets a rapidly growing industry. Forecasts from market analysis firm Grand View Research project 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 this year to an estimated $48.84 billion by 2030. Grand View Research found North America accounts for the largest revenue share, 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 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 delivered a loss of more than 31% over the past five years. Much of that decline reflects waning COVID vaccine sales, as revenue growth contracted 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, posting nearly a 7% increase in revenue. The stock's dividend has also softened some investors' 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, though a reported 100% dividend payout ratio raises questions for some investors. For investors willing to accept short-term uncertainty while betting on the near- and mid-term potential of prescription weight loss drugs, Pfizer can provide income and serve as a speculative way to play the GLP-1 space. However, growth-focused investors may be wary after another year of weak performance. Analysts' average 12-month price target implies a little more than 10% upside from the current price, and the consensus rating is Hold. Meanwhile, short interest has been climbing as the stock attracts more bears. Currently, about $3.58 billion of the float is shorted—nearly 84% more than PFE's short position at the end of January 2025.
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