Pfizer has indicated that its recent acquisition of Metsera does not mark the end of its business development efforts. According to reports from Guggenheim analysts, CEO Albert Bourla said Pfizer still has about $6 billion available for further deals. This remaining budget will be directed toward smaller transactions, rather than large-scale acquisitions like the $10 billion spent on Metsera.
The company is focusing its future investments on two main areas: internal medicine and immunology. While Pfizer's oncology portfolio was expanded through a deal with 3SBio earlier this year—where it licensed a PD-1/VEGF bispecific antibody for solid tumors for an upfront payment of $1.5 billion and up to $6 billion in total—and through its 2023 purchase of Seagen, vaccines will remain an in-house development priority.
Guggenheim reported that Pfizer plans to target deals ranging from hundreds of millions to low billions of dollars. One such transaction occurred recently when Pfizer entered into an agreement with Fusun Pharma’s YaoPharma. Under this arrangement, Pfizer licensed a GLP-1 receptor agonist, paying $150 million upfront and agreeing to as much as $1.9 billion in milestone payments.
BMO Capital Markets commented on the YaoPharma deal: "We appreciate the low upfront payment made by Pfizer for this obesity diversification as conservative capital deployment is still favored by shareholders conscious of the dividend payout ratio." The firm noted this approach was prudent given the competitive bidding for Metsera.
In parallel with these business development activities, Pfizer continues to implement cost-cutting measures aimed at saving $4.5 billion by the end of 2025 and reaching $7.2 billion in savings by 2028.
