Pfizer shares downgraded as patent expirations loom

Pfizer Inc. shares (PFE) were downgraded to market perform from outperform at TD Cowen on Thursday, as analysts see upcoming patent expirations and shaky confidence in the drugmaker's management clouding the outlook. Despite a brutal 2023, when the stock dropped more than 40%, it's "tough to pound the table even from these levels," the analysts wrote, adding that expected strong earnings growth through 2026 will be weighed down longer term by losses of market exclusivity on key drugs like the blood thinner Eliquis and breast cancer treatment Ibrance. The analysts said their confidence in Pfizer management is "not the highest," noting that much of the company's recent guidance has proven overly optimistic and decisions to divest assets through Roivant Sciences Ltd. (ROIV) and Cerevel Therapeutics Holdings Inc. (CERE) look questionable given the values placed on those assets by competitors. Pfizer shares fell 0.2% premarket on Thursday and are down 40.7% over the past 12 months, while the S&P 500 has gained 22%.

-Eleanor Laise

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01-04-24 0843ET

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