A Look at Pfizer's Valuation Following FDA Approval of PADCEV Combination Therapy for Bladder Cancer

Pfizer (NYSE:PFE) and Astellas Pharma have secured FDA approval for PADCEV, combined with Keytruda, as a treatment before and after surgery for muscle-invasive bladder cancer in adults unable to receive cisplatin-based chemotherapy. This regulatory decision is based on encouraging Phase 3 trial data and marks an important step for Pfizer's oncology pipeline and broader portfolio strategy.

See our latest analysis for Pfizer.

The recent FDA approval adds further momentum to Pfizer’s push beyond COVID, following closely on the heels of its multi-billion dollar Metsera acquisition and the decision to divest its BioNTech stake. While Pfizer’s year-to-date share price return remains negative at -5.9%, resilient growth in oncology and other key franchises is helping offset weaker demand for COVID products. The stock’s 4.7% total shareholder return over the past year suggests sentiment may be stabilizing, even if long-term total returns highlight the need for continued portfolio transformation.

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With shares still trading well below analysts’ average price targets and boasting an above-average dividend yield, does this set the stage for a compelling value play in Pfizer, or is the market already reflecting its future turnaround prospects?

Most Popular Narrative: 13.9% Undervalued

Pfizer's most widely-followed narrative suggests the stock’s fair value sits at $29.08. This is a notable gap above the last close of $25.04 and highlights renewed interest from the analyst community in the wake of strategic moves and pipeline progress.

"Robust expansion of Pfizer's late-stage pipeline, especially in oncology and rare diseases, with multiple high-potential launches and label expansions (e.g., Elrexfio in multiple myeloma, SV in non-small cell lung cancer, advanced ADC portfolio, and pipeline vaccines), stands to drive sustained long-term revenue and earnings growth by addressing rising global demand for innovative therapies as the population ages."

Read the complete narrative.

Curious what financial assumptions are fueling this bullish view? The stage is set for bold revenue shifts, accelerated margin gains, and a future profit multiple that reveals surprising expectations. Unlock the full verdict and see where analysts are really placing their bets.

Result: Fair Value of $29.08 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory uncertainty and intensifying competition could quickly challenge this upbeat outlook if policy or market shifts affect key revenue streams.

Find out about the key risks to this Pfizer narrative.

Build Your Own Pfizer Narrative

If this outlook does not align with your perspective, or you would rather dig into the data yourself, it takes just a few minutes to craft your own view. Do it your way

A great starting point for your Pfizer research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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