A nearly 91-year-old British woman received the world’s first COVID-19 vaccine developed by BioNTech/Pfizer in December 2020, marking a pivotal moment in the global fight against the pandemic. Now, more than three years later, the pharmaceutical giant faces a critical juncture as it navigates a post-pandemic landscape and seeks to redefine its growth trajectory.
Pfizer’s revenue surged during the COVID-19 crisis, fueled by unprecedented demand for its vaccine, Comirnaty, developed in partnership with BioNTech. Though, as the acute phase of the pandemic subsides, the company is experiencing a significant decline in COVID-related sales, prompting investors to reassess its future prospects. This shift has been reflected in the company’s stock performance, leading to questions about whether the current moment presents an opportune time for investment or signals further challenges ahead.
Recent quarterly reports confirm a substantial decrease in revenue from COVID-19 products. Pfizer is now focused on mitigating this decline by advancing its pipeline of new medications in areas such as oncology, immunology, and rare diseases. The success of this strategy is being closely monitored by analysts in Europe and the United States, who are evaluating whether Pfizer can successfully transition to a “post-COVID story.”
For German investors, Pfizer’s stock (ISIN US7170811035, typically listed as “PFE”) is readily available for trading on platforms like Xetra, Frankfurt Stock Exchange, and Tradegate. Many brokers in the DACH region offer the stock as a single share, through savings plans, or as part of exchange-traded funds (ETFs) with significant Pfizer holdings.
Pfizer’s strategy centers on strengthening its presence in oncology, rare diseases, and the development of new blockbuster drugs. A key component of this strategy involves collaborations and partnerships, including those within the German market. The company’s relationship with BioNTech, stemming from the development of the COVID-19 vaccine, highlights Germany’s importance as a strategic innovation hub for Pfizer.
The German healthcare market presents both opportunities and challenges for Pfizer. The country’s regulated pricing system for pharmaceuticals can impact profit margins, while political decisions regarding generics, reimbursements, and vaccination programs directly affect revenue. However, collaborations with German biotech companies, like BioNTech, demonstrate Pfizer’s commitment to the region’s innovation ecosystem.
Investing in Pfizer also means indirectly investing in the development of the German healthcare sector, including the question of market access for high-priced therapies. The Paul-Ehrlich-Institut, Germany’s regulatory agency for vaccines, maintains a list of approved COVID-19 vaccines, but does not provide information on market availability.
Analysts describe Pfizer as a “value and dividend title with turnaround potential,” but caution against expecting a rapid recovery. The market remains uncertain about the company’s earnings performance without the boost from COVID-19 vaccine sales. The pipeline of late-stage studies is under intense scrutiny, as approvals from regulatory authorities in the United States, Europe, and Germany will determine whether new drugs can drive significant revenue growth.
German investors should also consider the currency exchange rate risk, as Pfizer reports its financials in US dollars. A weaker euro can increase the value of dividends and capital gains when converted to euros, while a stronger euro can have the opposite effect. German investors must be aware of the tax implications of dividends and capital gains from US stocks, including potential US withholding taxes and opportunities for tax credits.
Recent developments include Pfizer and BioNTech submitting an application for approval of a COVID-19 vaccine adapted to the LP.8.1 variant. This ongoing effort to update the vaccine reflects the continued demand to address evolving strains of the virus.