Pfizer is grappling with a significant downturn in revenue as demand for Covid-19 vaccines declines. The company recently reported that revenues from its conventional Covid vaccine and high-risk jab fell by 34 per cent and 95 per cent respectively. Despite raising its overall 2026 revenue estimate, Pfizer expects Covid-related earnings to be $1bn lower than previously anticipated.

This decline has impacted Pfizer's market valuation, which currently stands at $152.5bn, leaving it trailing behind rivals like Amgen and Gilead. Investors are increasingly anxious about the company's trajectory, making Pfizer the most heavily shorted pharmaceutical company with a market value above $50bn. Concerns also surround its $60.5bn debt load and the potential for a dividend cut to fund future acquisitions.

To replenish its pipeline, Pfizer has engaged in major deals, such as the $43bn acquisition of Seagen and a recent deal with China's Innovent. However, recent setbacks, including a failed phase 3 trial for a Seagen cancer drug, have added to the pressure on CEO Albert Bourla to invigorate the company's share price and R&D franchise.