Pfizer (NYSE:PFE) Expands RSV Vaccine Use In Europe Amid 3% Share Price Dip

Pfizer (NYSE:PFE) recently saw the European Commission expand the authorization for its RSV vaccine, ABRYSVO, to include younger adults, and announced a collaboration with Flagship Pioneering for autoimmune therapeutics. Despite this positive news, Pfizer's share price declined by 3% last week, aligning somewhat with the broader market's 3.4% drop amid heightened investor anxiety over impending U.S. tariffs. While rotation into big tech buoyed by Tesla's gains contrasted the broader downturn, it seems the general market volatility and concerns about economic growth outweighed Pfizer's announcements, likely contributing to its recent stock performance.

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Pfizer's total shareholder return, encompassing both share price and dividends, exhibited a 2.86% decline over the last year. This period saw Pfizer underperforming relative to the broader US Pharmaceuticals industry and the US market, which experienced a 1.3% decline and a 6.1% gain, respectively. Several key developments colored this narrative. Recent earnings reports highlighted a notable improvement, with Q4 2024 revenue reaching US$17.76 billion from US$14.57 billion in Q4 2023. Additionally, dividends were increased, with a new quarterly cash dividend declared in early April 2025.

Product innovations played a vital role, with FDA approval for ADCETRIS in combination therapy for lymphoma and the expansion of ABRYSVO's marketing authorization in Europe. Strategic alliances such as the collaboration with Flagship Pioneering for autoimmune therapeutics were forged, promising future growth. Meanwhile, activist investor activities, including Starboard Value's calls for greater accountability on acquisitions, added pressure to management's strategic decisions. These factors, among others, shaped Pfizer's performance trajectory.

Our expertly prepared valuation report Pfizer implies its share price may be lower than expected.

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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