Pfizer Nears Major Bottom: A Turning Point for Investors?

Pfizer Inc. is entering a critical recovery phase after a steep decline in COVID-related revenue and a more than 50% drop in share price. The company is shifting focus toward oncology and high-potential drugs through major acquisitions and licensing deals. It is also cutting costs and reinvesting in research to fuel long-term growth. With key regulatory decisions and clinical trial results expected in 2025, Pfizer is positioning itself for a potential rebound. This article explores the catalysts, valuation, and technical analysis that could drive a strong turnaround in Pfizer stock.

Key Catalysts, Pipeline Growth, and Long-Term Upside

Strategic Acquisitions and Regulatory Milestones Position Pfizer for a Rebound

Pfizer has faced major challenges in recent years. Revenue has dropped sharply after demand for its COVID-19 vaccine and treatment declined. In 2022, the vaccine generated $37 billion, and the treatment earned $18 billion. These blockbuster products powered record sales of $100 billion. But by 2024, quarterly revenue dropped to around $13 billion, as shown in the chart below.

The company’s stock price dropped in tandem with the decline in revenue. It was found that Pfizer shares have decreased by over 50% over the past three years. Investors reacted to falling COVID-related revenue and looming patent expirations, which pushed the stock into value territory.

The chart below shows that the stock price hit a strong support level in 2025 and has since rebounded. A successful rebound with a strong close by December 2025 could mark the year as a turnaround point for Pfizer. Historically, a similar reversal occurred in 2009, when the stock surged 460%, rising from its 2009 low of $11.02 to its 2021 high of $61.71.

Despite the decline, Pfizer is actively rebuilding its operations. The company spent $43 billion to acquire Seagen, a biopharmaceutical company specializing in cancer treatments. This deal expanded Pfizer’s oncology portfolio with products like Padcev. When combined with Keytruda, Padcev is now the most prescribed first-line treatment for advanced bladder cancer in the US. Pfizer plans to expand its use to additional patient groups.

The company also paid $1.25 billion up front to license SSGJ-707 from 3SBio, a promising bispecific antibody. The full deal includes milestone payments of up to $4.8 billion. These moves strengthen Pfizer’s goal to have eight cancer blockbusters by 2030.

Moreover, Pfizer expects nine phase 3 readouts in the second half of 2025. It will also start several pivotal trials. In 2025, the company is awaiting at least four major regulatory decisions. Each success could add billions in future revenue and boost investor confidence.

Cost Savings and R&D Focus Strengthen Pfizer’s Competitive Position

Cost control is another key driver. Pfizer expects to deliver $4.5 billion in net cost savings by the end of 2025. By 2027, that figure is projected to rise to $7.2 billion. The company plans to reinvest $500 million of those savings into research and development (R&D). The chart below shows that Pfizer has consistently invested in R&D over the past decades. In 2024, R&D expenses totaled $10.82 billion, while Q2 2025 expenses stood at $2.203 billion. This strategic approach is expected to enhance pipeline quality and support long-term profitability.

Pfizer has shifted its R&D strategy. It is now advancing fewer but higher-potential drugs. This focused investment may lead to more blockbuster approvals. Investors could respond positively as new data and drug launches are announced. Steady progress on this front could lift sentiment and stock valuation.

Valuation adds another reason to consider buying Pfizer stocks. Pfizer trades at just 8.38 times forward earnings, which is well below the average for the healthcare sector. This level is even lower than the 10x multiple seen late last year. Moreover, the chart below shows that Pfizer has the lowest forward earnings multiple compared to Merck & Co. Inc. (MRK), Sanofi SA (SNY), and GSK PLC (GSK), which keeps Pfizer attractively valued relative to its peers.

Pfizer is in a transition phase. But its pipeline, cost savings, and low valuation give it powerful upside potential. The company is no longer just a COVID play. It’s building strength in oncology and other areas. The company is expected to release its Q2 2025 earnings on August 5, 2025, which could shape its outlook and determine the next direction for the stock. Investors buying now could benefit from a multi-year comeback through 2030 and beyond.

Long-Term Technical Setup Points to Major Bottom

Pfizer has shown consistent historical growth over the past decades. Currently, the stock price is approaching a major long-term support level, suggesting a potential rebound from this point. As shown in the quarterly chart below, this region has served as a strong long-term support zone over the past decade.

In 1994, the stock bottomed at $4.20 and later surged to a high of $47.44. After reaching that peak, the price corrected and formed a new bottom in 2009 at $11.02. From there, it rebounded strongly, hitting a record high of $61.71.

These alternating bottoms and highs have formed an ascending channel pattern. As of Q2 2025, the price has approached the lower boundary of this channel. It has already hit a low in Q2 2025 and is beginning to rebound in Q3 2025.

If the price consolidates above the $20 level, it is likely to continue climbing. However, failure to hold the channel support may trigger a deeper correction toward $11.20. Given the historical trend and current technical setup, the stock is likely forming a new bottom. This scenario presents a strong long-term buying opportunity for investors.

Key Risks That May Delay Pfizer’s Recovery

Pfizer faces several market risks that could impact its recovery. Revenue has declined sharply to $13 billion in recent quarters. The company remains vulnerable to patent expirations, including those for key drugs such as Eliquis. If regulatory approvals for pipeline products are delayed or unsuccessful, future growth may stall. The $43 billion Seagen acquisition and $1.25 billion licensing deal with 3SBio also carry execution and integration risks.

From a technical perspective, a break below the $20 support level could trigger further downside toward $11. Rising R&D costs and ongoing pressure from generic competition could weigh on margins. These factors may limit near-term gains if not managed effectively.

The chart below shows that Pfizer’s stock has formed an ascending broadening wedge pattern that extended from the 2009 low to the 2020–2021 high. This pattern was broken in 2023, when the price dropped below the $35 level, triggering a sharp decline.

Technically, the breakdown from the ascending broadening wedge has opened the door for a potential move toward the $11 area, increasing downside risk. However, the long-term quarterly chart suggests that the stock should find strong support between the $20 and $22 range. This support zone is also confirmed by the 78.6% Fibonacci retracement level, measured from the $11 bottom to the $61 high.

The confluence of support at the $22 area makes this level critical for price stability. That said, a confirmed break below $20 could trigger another leg down toward the $11.50 region. To manage this risk, the best strategy for long-term investors may be to accumulate at current levels, while being prepared to add more if the stock corrects further toward the $11 area.

Despite recent weakness, Pfizer’s financial strength and strategic pipeline investments suggest the stock is likely to trend higher over the coming years. This setup presents a potential opportunity for value investors seeking long-term growth.

Why 2025 Could Be a Turning Point for Long-Term Investors

Pfizer is rebuilding after a sharp decline in revenue and stock price. The company has made bold moves, including the $43 billion acquisition of Seagen and several high-stakes licensing deals. Its pipeline is growing stronger, especially in oncology. Upcoming regulatory decisions and phase 3 data could unlock new value. Meanwhile, cost savings and focused R&D spending are improving long-term prospects.

Technically, the stock is near a critical support zone and appears to be forming a bottom. Moreover, the valuation remains attractive at 8.38x forward earnings, well below the sector average. This undervaluation, combined with strong technical support in the $20–$22 range, suggests a potential inflection point for a rebound. Therefore, investors may consider initiating positions at current levels and adding more if the stock corrects further.