Novo Nordisk, Eli Lilly slide after Trump comments on weight loss drug pricing
Investing.com - BMO Capital has reiterated an Outperform rating and $30.00 price target on Pfizer (NYSE:PFE), a pharmaceutical giant with a $137 billion market cap currently trading at an attractive P/E ratio of 12.7x, following the company’s announcement of a new deal in the obesity treatment space. According to InvestingPro analysis, Pfizer appears undervalued at current levels.
The pharmaceutical giant has entered into an agreement with Metsera, marking what BMO Capital describes as a "thoughtful re-entry into the obesity metabolic space" after previous setbacks with its lotiglipron and danuglipron programs.
BMO Capital views the Metsera deal as "one of Pfizer’s better BD opportunities," noting that the transaction is structured with contingent value rights (CVRs) that allow Pfizer to reduce risk while re-establishing its competitive position in the obesity treatment market.
Although still in early stages, Metsera’s long-acting GLP-1 and amylin agents appear competitive with similar products from industry rivals Lilly and Novo, including eloralintide/cagrilintide and tirzepatide/semaglutide, according to BMO Capital’s assessment.
The deal structure gives Pfizer "the opportunity to de-risk its position while again competing in obesity," BMO Capital noted in its analysis of the transaction.
In other recent news, Pfizer has made headlines with its acquisition of obesity biotech Metsera for $7.3 billion. This deal values Metsera at $4.9 billion upfront and includes contingent value rights, representing a 42% premium to Metsera’s previous closing price. Meanwhile, Bernstein has reiterated a Market Perform rating for Pfizer, setting a price target of $30.00. In other developments, Pfizer has reaffirmed its commitment to transparency in its COVID-19 vaccine research, highlighting the impact of American innovation in preventing economic collapse and saving lives globally. Additionally, the U.S. Department of Health and Human Services and the FDA have announced reforms targeting misleading pharmaceutical advertising, which could pose challenges for pharma companies, according to Raymond James. These reforms include issuing thousands of warning letters and initiating rulemaking to address advertising regulations. In a broader healthcare context, a panel of vaccine advisers has voted to end the CDC’s universal recommendation for COVID-19 shots, shifting the decision to a more personalized approach. Lastly, the Trump administration is considering a website named ’TrumpRx’ to help patients purchase prescription medications at discounted prices directly from pharmaceutical companies.
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