Why Pfizer Likely Isn't Done With M&A After the Seagen Deal
Pfizer (NYSE: PFE) has been a company on a mission, looking to restock its pipeline with growth opportunities as its COVID-19 revenue declines this year and beyond. In the past year, it has completed multiple acquisitions, including clinical stage drugmaker Arena Pharmaceuticals and biopharmaceutical outfit Global Blood Therapeutics -- moves that should bolster Pfizer's sickle cell disease portfolio.
But one of the biggest steps it has made recently is its plan to acquire cancer specialist Seagen for a massive $43 billion. It's a potential game changer for the business, but that doesn't mean Pfizer's done with acquisitions just yet. Let's see what that could mean for investors.
Pfizer is facing multiple headwinds as it will lose revenue from its COVID-19 vaccine and pill as the pandemic becomes less and less of a concern for the public. Some of its drugs are also losing patent protection, and as a result, their sales will fall due to rising competition from generics. Those are key reasons why Pfizer trades at a remarkably low 7 times earnings. Investors are simply worried about how strong the company's future will be once all the dust settles.
Source Fool.com
