Pfizer and Gilead Face Growth Challenges
Source: yahoo ·
Pfizer and Gilead are at a crossroads as they navigate their growth trajectories, with Pfizer's newer medicines slowly gaining traction and Gilead expanding faster but remaining concentrated in HIV treatments.
Key takeaways
- Pfizer's non-COVID portfolio grew 5% operationally, with launched and acquired products generating $3.2 billion and increasing 18% operationally.
- Gilead's product sales excluding Veklury increased 10% to $7.6 billion, with HIV sales rising 12% to $5.7 billion.
- Pfizer lowered its 2026 COVID-product forecast from $5 billion to $4 billion due to low infection levels weighing on Paxlovid utilization.
- Gilead raised its 2026 product-sales outlook to $30.1–$30.4 billion and increased guidance for product sales excluding Veklury to $29.8–$30.1 billion.
- Pfizer expects approximately $9.7 billion in savings from its cost-realignment and manufacturing-optimization programs through 2029.
- Gilead's HIV portfolio added a potentially important growth driver with the launch of Yeztugo, a twice-yearly injectable HIV-prevention medicine.
Why it matters
The growth stories of Pfizer and Gilead will have significant implications for the pharmaceutical industry, with investors weighing the potential for Pfizer to replace its COVID-related revenue and Gilead's progress in expanding its HIV portfolio and building a meaningful oncology franchise. The choice between an unfinished turnaround and a stronger growth story will drive market and sector trends, with competitive implications for other pharmaceutical companies.
What to watch
- Pfizer's upcoming patent cliff and potential generic and biosimilar competition in 2026.
- Gilead's progress in liver disease and oncology, including the growth of Trodelvy sales.
- Pfizer's cost-realignment and manufacturing-optimization programs, which could help preserve margins and continue investing in areas such as oncology and obesity.