Pharmaceutical company Pfizer is carefully calculating its next move following the windfall it experienced during the COVID-19 pandemic. Yahoo Finance Healthcare Reporter Anjalee Khemlani highlights Pfizer CEO Albert Bourla's comments on Pfizer's stock outlook and plans to return capital to investors.
Video Transcript
SEANA SMITH: Well, after a huge windfall during the pandemic, many investors are eagerly awaiting to find out what Pfizer's next move is going to be. It's currently going through a $43 billion deal with Seagen. But following that, could shareholder benefits be on the table.
Anjalee Khemlani, following the story for us. Anj, what can we expect?
ANJALEE KHEMLANI: Well, Seana, that last part is exactly what shareholders are looking for, some sort of benefit from this windfall. Questions about what the pipeline looks like for Pfizer, they've really had to prove their mettle when it comes to this M&A activity, in particular, Seagen, again, with that big deal, but then also looking at beyond that.
And it's something that really has actually been on the mind of both Pfizer and its CEO for quite some time. So a recent Goldman Sachs analyst noted that after the Seagen deal, quote, "management would look to increase the extent of capital they return to shareholders through both share repurchases and greater dividend increases relative to prior years, is something that they're looking for discussing with the management as well.
Meanwhile, we've had conversations with Pfizer CEO Albert Bourla just about the stock and how shareholders have reacted. We know that it's one of the only companies that didn't necessarily benefit stock-wise in the same way you saw other competitors like Moderna and Novavax and J&J, get a little bit of that boost during the pandemic.
Pfizer shot has-- stock has tended to stay within a certain range. And so that hasn't really changed even after all these deals, even after the tens of billions of dollars in the COVID windfall. So it really is interesting to keep an eye on. We've heard him, Pfizer CEO Albert Bourla tell us, quote, "The multiple that is assigned to our stock is bottom of the range." He's been frustrated by the reaction from the stock market in the past.
But what I remember, you know, back in 2019 prior to the pandemic and prior to any of this happening, was when Pfizer was really looking forward to being a leaner, greener machine, you know, really focusing on innovation, peeling back on its generics and its consumer business with Upjohn and that spinoff.
And so I remember him saying, quote, that the company will continue to have financial flexibility to invest in growth while returning capital to the investor. So those already on the table and it seems like just a matter of time on when this timeline could happen and when the shareholders can get an answer to this question because Pfizer is certainly sitting on a lot of cash right now.
They are making moves. And they do have to boost their pipeline because of the patent cliffs that they're facing. And so after that, maybe that conversation happens, so something will be around. So, of course, watch and report back.
SEANA SMITH: Yeah, shares off over 30% in the past year. And Anjalee Khemlani, thanks.