PFIZER

Analysis of Pfizer share price

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Pfizer's market cap, dividends, sales and earnings in 2020

19/10/2021 - 07h53

In 2020, Pfizer Group's business improved compared to the previous year. In particular, the pharmaceutical company saw a slight increase in revenue with an increase in sales.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, we would of course recommend you monitor all strategic agreements and partnerships that Pfizer implements with other companies or competitors in the pharmaceutical sector. The agreements relating to research and development of new treatments are often positive for the growth of this group and its share price on the stock markets.

Analysis N°2

We would also monitor the health sector requirements worldwide noting frequent illnesses and diseases or those registering a rise for which Pfizer may provide solutions and treatments.

Analysis N°3

Merger and acquisition operations completed abroad, notably in emerging markets are also good indicators of a rise in this asset price and should therefore be monitored.

Analysis N°4

It is also recommended to follow the launch of new products from the group and their success or failure following their entry onto the market that could generate increased sales or losses in income.

Analysis N°5

The regulations in effect relating to the sale of medicines are increasingly strict around the world and it is therefore important to monitor and take into account any changes in them.

Analysis N°6

Finally, as with numerous other activity sectors, that of the pharmaceutical industry continues to suffer from the effects of the European economic downtrend.

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General presentation of Pfizer

The Pfizer Group is the international leader in pharmaceuticals at the present time. Its activities can be separated into several categories including medicines for the treatment of cardiovascular illnesses, nervous system problems, infectious illnesses, urology, ophthalmology and also vaccines and oncology products.

The majority of its turnover is achieved in the United States and Europe. The Pfizer share price is currently quoted on the NYSE ARCA Europe stock market in the Netherlands and is also integrated in the calculation of the Dow Jones stock market Index.

Analysis of Pfizer share price
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The major competitors of Pfizer

The Pfizer group faces significant competition from several large pharmaceutical companies in the world that you should absolutely know about and of which here is a quick presentation:

Novartis

First of all, the pharmaceutical group Novartis created in Switzerland in 1996 is a direct competitor of Pfizer. It was formed from the merger of Ciba-Geigy and Sandoz at that time and is currently headquartered in Basel.

Roche Holding

This Swiss pharmaceutical company is also a serious competitor of Pfizer and one of the leading companies in the industry. It is active in both the pharmaceutical and diagnostic sectors and is present in more than 150 countries worldwide. Roche currently employs 94,000 people.

Sanofi

Of course, the French multinational giant Sanofi has activities that compete with Pfizer's, including pharmaceuticals and vaccines. It is one of the largest companies in this sector in terms of turnover and market capitalisation. The company is largely owned by the French group L'Oréal.

Merck

This other company, this time German, also specialises in the same field as Pfizer. It is a company that operates in the pharmaceutical field with its subsidiary Merck Serono and in the chemical field.

Gilead Sciences

Another competitor of the Pfizer group is Gilead Sciences, an American pharmaceutical laboratory and one of the leaders in the sector.

Johnson & Johnson

Finally, Johnson & Johnson is an American pharmaceutical company founded in 1886, which mainly produces pharmaceutical and medical devices as well as hygiene products, cosmetics and related services for consumers and healthcare professionals. The company currently operates 250 subsidiaries in some 60 countries around the world and markets its products in more than 175 countries. The group is included in the Dow Jones stock index and J&J owns several brands of medicines and first aid supplies.


The major partners of Pfizer

Of course, the Pfizer group does not only have enemies but also regularly sets up strategic partnerships with other companies as in the two examples we will mention here:

BioNTech

First and foremost and in 2020, the group of course collaborated with the company BioNTech in a cooperation to develop and distribute a vaccine against Covid-19, created using Messenger RNA technology. The agreement included a material transfer and collaboration agreement to enable the parties to start the cooperation quickly. Its objective was of course to accelerate the development of BioNTech's BNT162 vaccine candidate programme against the new mRNA-based coronavirus, the first in its therapeutic class. This was tested through clinical trials from April 2020 and the deal resulted in a fast and efficient collaboration. Recall that the two companies had already collaborated in 2018 in the development of a flu vaccine, again based on messenger RNA.

Myovant Sciences

Also in 2020, the Pfizer group set up another strategic partnership, this time with the laboratory Myovant Sciences. The aim of this alliance was to jointly develop and market a pituitary gonatrophin-releasing hormone (GnRH) receptor antagonist under the name relugolix. This treatment is used in prostate cancer care and women's health in the US and Canada. Under the terms of the agreement, Myovant received an initial payment of $650 million in addition to several regulatory and commercial milestones, for a total amount of up to $4.2 billion. Pfizer has negotiated an exclusive right to market relogolix in oncology outside the US and Canada, excluding certain Asian countries.

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The factors in favour of a rise in the Pfizer share price:

First of all, it is important to remember that the Pfizer Group is one of the giants of the pharmaceutical industry throughout the world. It has been able to achieve this very advantageous positioning thanks to a very strong international presence, as it operates in more than fifty different countries.

This brings us to another of the company's assets, which this time concerns the good geographical distribution of its sources of revenue. By marketing its products throughout the world, Pfizer ensures good protection against geo-economic risks over the long term.

Of course, another strength of the Pfizer Group is its capacity for innovation, which enables it to stand out effectively from the competition by developing products that are both innovative and respond to new consumer needs.  To achieve this goal, Pfizer naturally invests a great deal of money in research and development and employs highly qualified researchers.

In addition, the economic and financial history of the company shows that the Pfizer Group has often been involved in mergers and acquisitions of major pharmaceutical brands around the world. This strategy has, of course, provided the company with a significant expansion and has contributed to strengthening its brand image.

The Pfizer brand is in itself an undeniable asset of the group since it is known worldwide and is associated with a rather positive image among patients, doctors and other pharmacists.

Finally, the Pfizer Group's large workforce of more than 100,000 employees throughout its organisation is of course also an advantage for the future of the group, which can thus respond effectively to demand and new market needs, both in terms of production and development.

The factors in favour of a drop in the Pfizer share price:

First of all, the level of competition in which the Pfizer Group operates is of course a major handicap for its growth opportunities. Indeed, the major pharmaceutical groups mentioned above, which compete directly with Pfizer, are waging a fierce war to retain and take market share. It is therefore particularly difficult for Pfizer to increase its sales in any significant way outside of the release of innovative products or the filing of patents.

Finally, Pfizer's second and last weak point concerns its brand image, which has recently been altered. Indeed, the image of this group has become increasingly negative in the eyes of consumers since the company was accused of having participated in the largest health fraud. The group illegally marketed one of its medicines, causing both mistrust among its customers and also mistrust in the market and among investors who are now reluctant to buy the stock.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

When was the Pfizer Company first created?

The Pfizer Company first came into being in 1849 in New York through the association between a German chemist, Charles Pfizer, and his cousin, a confectioner, Charles Erhart. In fact these two men first collaborated with the objective of creating and the large scale manufacturing of a type of confectionary named Santonine which was a remedy for treating intestinal worms but had a bitter taste. The associates had the idea of covering these pills with a nutty layer.  

How to detect the future trends of the Pfizer share price?

To successfully forecast the future trends in Pfizer shares you should complete two distinct types of analysis, the technical and fundamental analyses. For the first analysis you will use the volatility indicators and the online stock market chart trends. For the second you will need to follow all significant publications and events of this group and its activity sector.

Who are the main shareholders of Pfizer Group?

Currently, Pfizer Group has several major private shareholders in its capital including The Vanguard Group with 7.74% of the shares, SSgA Funds Management with 5.20% of the shares, Capital Research & Management World Investors with 4.66%, Wellington Management Company with 4.51%, Capital Research & Management with 2.56%, BlackRock Fund Advisors with 2.42%, Putnam with .83%, Geode Capital Management with 1.61%, Northern Trust Investments with 1.24% and Norges Bank Investment Management with 1.07%.

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