Pfizer (PFE +0.43%) investors got some very bad news when the company was forced to abandon its internally developed GLP-1 weight loss drug in April, 2025. With patent expirations on the horizon, falling even further behind competitors like Novo Nordisk (NVO +0.58%) and Eli Lilly (LLY +1.53%) in an emerging new drug niche was a bad look. However, what happened next is what's really important.
Pfizer quickly changes course in the GLP-1 space
GLP-1 drugs have seen strong consumer demand. Eli Lilly's industry-leading GLP-1 drugs Mounjaro and Zepbound, for example, saw revenue growth of 99% and 175%, respectively, in 2025. The flameout of Pfizer's internally generated GLP-1 candidate was a major setback.
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In fact, Pfizer hasn't exactly been hitting out of the park for a while. Its COVID vaccine success is well in the past, and it has notable patent expirations coming up over the next couple of years. The stock is down around 50% from its 2021 highs. That said, Pfizer didn't give up on the GLP-1 niche. It quickly shifted gears, buying a company with a promising GLP-1 candidate. The deal closed in November, 2025, less than a year after Pfizer announced its own weight loss drug had been dropped. That's a pretty quick pivot.
Pfizer is still an industry giant
What's interesting here is that, despite a massive decline in value, Pfizer still has a market cap of $150 billion. It is a well-respected industry giant navigating the normal ebbs and flows of the pharmaceutical industry. Innovation is vital, but it doesn't come in a smooth line. And, sometimes, a company's plans don't work out as well as hoped.
NYSE: PFE
Key Data Points
It is what happens during the hard times that defines a drug company. In February 2026, less than a year after its own drug was dropped, Pfizer announced that the long-acting GLP-1 drug it is now working on was progressing as hoped. That's the sign that Pfizer hasn't suddenly lost its way. It is still the industry-leading drugmaker it was back when COVID vaccines were driving the stock higher.
Long-term investors should consider Pfizer
Pfizer's dividend yield is a lofty 6.2%, largely because its payout ratio is over 100%. Conservative dividend investors may want to tread with caution. However, management has stated its intention to maintain the dividend. All in, if you think in decades, this out-of-favor drug stock is still an industry leader. It could easily help set you up for life and, likely, for a lifetime of dividends.
