Pfizer Inc. (PFE) Business Profile

What it does

Pfizer is a global biopharmaceutical company that researches, develops, manufactures and sells medicines and vaccines. Founded in 1849 and headquartered in New York City, it is led by Chief Executive Officer Albert Bourla.

Its products span several areas of care. Primary care includes the blood thinner Eliquis, migraine treatments Nurtec ODT/Vydura and Zavzpret, and vaccines such as the Prevnar family and Comirnaty. Pfizer also sells Paxlovid for COVID-19. Its specialty medicines address conditions including inflammatory diseases, rare diseases and certain infections.

In cancer, Pfizer’s portfolio includes Ibrance, Xtandi, Padcev, Adcetris and other medicines. It also sells sterile injectable medicines and biosimilars: medicines designed to be highly similar to existing biological products. These products reach patients through wholesalers, hospitals, pharmacies, healthcare providers and government programs.

Pfizer operates a contract development and manufacturing business called PC1, which also supplies pharmaceutical ingredients. It is winding down Pfizer Ignite, a service that provided research and development support to selected biotechnology companies.

The company develops products both internally and with partners. For example, it jointly develops and commercializes Comirnaty with BioNTech and works with BMS on Eliquis. Such arrangements can divide development costs, profits and commercial rights between companies.

How it makes money

Most of Pfizer’s revenue comes from manufacturing and selling biopharmaceutical products. Biopharma is its only reportable segment; its commercial teams sell the products while global functions handle research, development, manufacturing and supply. PC1 provides contract development and manufacturing services and supplies specialty active pharmaceutical ingredients.

Pfizer earns product revenue when it sells medicines and vaccines. Some products are sold through collaborations that also provide profit shares or royalties. For Comirnaty, Pfizer and BioNTech share development costs and gross profits equally, subject to market-by-market authorizations and specified geographic exclusions. Pfizer and BMS generally share Eliquis profits and losses equally, with different arrangements in certain countries.

For Padcev, Pfizer records U.S. net sales and handles U.S. distribution, while Pfizer and Astellas share certain commercialization costs and profits. Outside the U.S., their rights and payments vary by market. Pfizer also receives tiered royalties on international Xtandi sales under its arrangement with Astellas.

Sales can recur as patients receive ongoing treatment or vaccination, but they vary with demand, competition and access. Insurers and pharmacy benefit managers negotiate preferred placement on lists of covered medicines, typically in exchange for rebates. Government programs also require discounts or rebates. Pfizer’s vaccine sales can be seasonal, and Paxlovid revenue trends with COVID-19 infection rates.

In 2025, total revenue was $62.6 billion. In the third quarter of 2026, Pfizer reported $3.8 billion in revenue from its launched and acquired products; that figure is not a company-wide quarterly total.

Customers and how it sells

Pfizer sells prescription medicines principally to wholesalers, as well as directly to retailers, hospitals, clinics, government agencies and pharmacies. In the U.S., vaccines are sold primarily to the federal government, wholesalers, provider offices, retail pharmacies and integrated delivery systems. Outside the U.S., vaccine customers are primarily government and non-government institutions.

Three customers accounted for substantial portions of revenue in FY2025: McKesson, Inc. represented 25.0%, Cencora, Inc. 16.0% and Cardinal Health, Inc. 13.0%.

Pfizer supplies medicines and vaccines to approximately 200 countries and territories. Revenue outside the U.S. was $25.5 billion, or 41% of total revenue, in 2025. China was its largest market outside the U.S. that year, representing 5% of total revenue.

Pfizer markets to healthcare providers and patients and works to obtain coverage on insurers’ and pharmacy benefit managers’ formularies. It also advertises directly to consumers in the U.S. and selected international markets. Some government vaccine contracts can be renegotiated or terminated at the government entity’s discretion.

Suppliers and costs

Pfizer manufactures products through its own operations and also depends on third parties for research, development, manufacturing and commercialization. Its PC1 business provides contract development and manufacturing services and supplies specialty active pharmaceutical ingredients. Disruptions at Pfizer’s facilities or those of third parties can affect supply, manufacturing and distribution.

Research and development is a continuing expense. Pfizer runs an internal research organization and obtains outside molecules and technologies through licenses, collaborations, acquisitions and investments. Some agreements can require payments when development, regulatory or commercial milestones are reached.

Pfizer is also reducing costs across its manufacturing network and other operations. It expects to deliver nearly all of the anticipated $7.2 billion of net savings from ongoing cost-improvement programs by the end of 2026. It anticipates an additional $2.5 billion of net savings from 2027 through 2029 under the next phase. Pfizer plans to continue investing in its pipeline while pursuing those savings.

Competitive position

Pfizer competes with research-based drugmakers, smaller research companies and manufacturers of generic medicines and biosimilars. Products compete on factors including effectiveness, safety, tolerability, ease of use and cost. Vaccines can also face competition from alternative or newer vaccines before or after patent expiration.

It was reported on 29 October 2026 that Alnylam’s AMVUTTRA competes with Pfizer’s tafamidis for patients with ATTR-CM, a heart condition. Pfizer sells tafamidis under the Vyndaqel family of brands. BMS, BioNTech and Astellas are named partners on products; their collaboration arrangements alone do not establish them as competitors in those products.

Patents and regulatory exclusivity can protect medicines for periods that vary by product and country. Once protection is lost, generic or biosimilar competition can bring lower prices and reduce sales. Pfizer also invests in research after approval, including work on additional uses, and markets products to providers and payors.

Our reading: Patent and regulatory protection provide a product-specific barrier, but its strength is limited by expiration dates and legal challenges. Our reading: Pfizer’s research, partnerships and international commercial network support its ability to develop and sell medicines, but competing firms also invest in research and can launch alternatives.

Growth opportunities

Pfizer’s growth plans include developing new medicines and vaccines, finding additional uses for existing products and expanding sales of launched and acquired products. Its research focuses on oncology, internal medicine, vaccines, and inflammation and immunology. Acquisitions, licenses and collaborations also bring products and technologies into the portfolio.

Pfizer has acquired Seagen and Metsera and licensed programs in oncology and cardiometabolic diseases. It reported that its legacy Seagen portfolio grew 39% year over year in the U.S. in the third quarter of 2026, driven by Padcev. Its launched and acquired products grew 32% operationally in that quarter.

In obesity, Pfizer plans to advance 10 active and planned Phase 3 trials in 2026, including a study of switching patients from approved weekly therapies to its investigational monthly treatment berobenatide. Pfizer is working toward a first potential approval for berobenatide in 2028. It also reported that its Phase 2b amylin combination study was fully enrolled.

Pfizer has started Phase 3 studies of tilrekimig in atopic dermatitis and is studying it in other inflammatory conditions. Its Lyme disease vaccine candidate with Valneva has entered European regulatory assessment, and Pfizer has filed an application in Canada. Pfizer’s targets and development plans depend on clinical results and regulatory decisions.

Structural risks

• Loss of exclusivity: Patent expirations, challenges and the end of regulatory exclusivity can expose products to lower-priced generics or biosimilars. It has identified U.S. exclusivity losses for Ibrance and Xtandi and international pressure on Eliquis as future headwinds.
• Pricing and reimbursement: Government pricing rules, required rebates and private payors’ efforts to manage drug costs can affect revenue. Medicare’s government-established price for Eliquis took effect in 2026; Ibrance and Xtandi were selected for prices effective in 2027.
• Product concentration: In 2025, 12 products each generated more than $1 billion and collectively accounted for 65% of total revenue. Competition or loss of protection for major products can affect results.
• Research and regulatory outcomes: Drug and vaccine development is lengthy, costly and unpredictable. Candidates may fail trials, encounter safety issues, not receive approval or fail commercially after approval.
• COVID-19 demand and operations: Demand for Comirnaty and Paxlovid can change with infection patterns, recommendations and coverage. Pfizer also faces potential supply-chain disruptions and depends on third parties for portions of development, manufacturing and commercialization.

Bottom line

Our reading

Our reading: Pfizer combines a global portfolio of marketed medicines and vaccines with an extensive development pipeline and product partnerships. Its business depends on replenishing products as exclusivity ends, while pricing controls and generic competition can reduce revenue from established treatments. The pipeline and acquired products offer potential replacements, but their contribution depends on development, approval and commercial execution.