RBC Capital Initiates Underperform Rating with $25 Pfizer Target, Cites $15B–$20B Revenue Decline
RBC Capital initiated Pfizer with an Underperform rating and $25 target, projecting a $15B–$20B revenue decline through 2030 and citing limited catalysts. Pfizer signed a China licensing deal for its GLP-1 drug ecnoglutide, securing undisclosed upfront fees and up to $495M in milestone payments to commercialize the therapy outside insurance.
1. Coverage Initiation and Rating
On February 25, RBC Capital initiated coverage of Pfizer with an Underperform rating and set a $25 price target based on concerns over the company’s future revenue trajectory.
2. Revenue Headwinds and Outlook
The firm projects Pfizer will face a structural revenue decline of $15 billion to $20 billion through 2030 due to loss of legacy product sales and anticipates limited new-product catalysts before 2026.
3. China Licensing Agreement
Pfizer licensed its GLP-1 therapy ecnoglutide to China-based Sciwind Biosciences, receiving undisclosed upfront fees and up to $495 million in milestone payments to commercialize the drug, approved in January, outside national insurance coverage.