Michael M. Santiago
Argus has downgraded Pfizer (NYSE:PFE) to hold, citing concerns about the company’s topline growth and delays in its GLP-1 development program.
The investment firm said Pfizer will need to compensate for around $17B in revenue that the products generated at peak sales prior to their loss of patent protection. It noted that Pfizer has guided 2024 revenue growth of 3% to 5%, excluding COVID products and its acquisition of Seagen, down from 7% in 2023.
Argus also cited setbacks to the company’s GLP-1 program, with development of a twice-daily formulation terminated due to adverse effects.
“PFE will be focused on developing the once-daily formulation with pharmacokinetics results due in 2024, but it will be behind Lilly’s (LLY) Zepbound and Novo Nordisk’s (NVO) Wegovy in the market for weight-loss therapies,” the analysts added.