Pfizer's Diversified Portfolio Supports a Narrow Moat Despite an Upcoming Patent Cliff
Pfizer's foundation remains solid, based on steady cash flows generated from a basket of diverse drugs. The company's large size confers significant competitive advantages in developing new drugs. This heft, combined with a broad portfolio of patent-protected drugs, has helped Pfizer build an economic moat around its business. In addition, Pfizer's 2020 divestment of its off-patent division Upjohn to create a new company (Viatris) in combination with Mylan, as well as its consumer business spinoff (Haleon) in 2022, should help focus the remaining innovative business.