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Just For You Pfizer Adds to Its Big Bet on Weight Loss DrugsAuthored by Jordan Chussler. Date Posted: 12/16/2025. 
Article Highlights - 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 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 time frame. While President Trump's official salary is $400,000 per year... his tax returns reveal he's been collecting up to $250,000 PER MONTH from one hidden source. Until recently, most Americans couldn't touch the type of investment that makes up this investment. But thanks to Executive Order 14330, that just changed. If you love investing in disruptive new companies... Discover how to invest in the fund Trump uses to collect this income >> And despite Pfizer making headlines on Nov. 13 after acquiring obesity biotech Metsera in a roughly $10 billion deal, the stock has only mustered a 0.23% gain since then. The nearly 177-year-old biopharma company is again looking to expand its role in the weight-loss drug market, with management and shareholders hoping a stronger position there can help offset lost revenue from waning demand for mRNA 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 that is in early-stage development. The drug is intended 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 it underscores Pfizer's commitment to the obesity-treatment market. Under the agreement, Pfizer will pay a $150 million fee upfront to YaoPharma's parent, Shanghai Fosun Pharmaceutical, which has an $8.4 billion market cap. Pfizer could also pay YaoPharma up to $1.94 billion in milestone payments if the drug advances as expected, plus royalties on sales if and when it is approved. Those milestone payments will be contingent on YaoPharma successfully progressing the pill through Phase 1 trials, with Pfizer taking control of later-stage development. Pfizer also plans to run combination studies—some of which are already mid-stage—using the Chinese company's pill together with Pfizer's own GIP receptor program. That mirrors a strategy Eli Lilly has used with Zepbound and Mounjaro, 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 executives are pursuing a long-term position in the GLP-1 and broader obesity-treatment markets. In recent weeks Pfizer has committed roughly $10.15 billion in upfront spending—about $10 billion for Metsera plus a $150 million upfront fee for the YaoPharma deal—and may pay substantially more if milestone targets are met. Forecasts from market analysis firm Grand View Research suggest that the GLP-1 weight-loss drug market could grow at a compound annual growth rate (CAGR) of about 18.5% from 2025 to 2030, expanding from under $14 billion earlier this year to roughly $48.84 billion by 2030. Grand View Research found that North America accounts for the largest revenue share—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 punished long-term holders, sliding more than 31% over the past five years. Much of that decline stems from a fall in COVID-vaccine sales, which contributed to revenue growth collapsing from more than 95% at the end of 2021 to a decline exceeding 41% by the end of 2023. Last year Pfizer's revenue rebounded modestly, registering a nearly 7% increase. The stock's yield 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. The company has increased its payout for 16 consecutive years, making the stock appealing to income investors despite a high payout ratio. For investors comfortable with a long time horizon and a bullish view on prescription weight-loss drugs, Pfizer offers regular income while acting as a speculative play in the GLP-1 space. However, growth-focused investors may be less patient: analysts' average 12-month price target implies a bit more than 10% upside from the current price and the consensus rating remains a Hold. Meanwhile, short interest has been rising as the stock attracts bearish bets. Currently, about $3.58 billion of the float is shorted—roughly 84% more than PFE's short position at the end of January 2025.
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