Pfizer CEO Albert Bourla said on Aug. 4 that the company will maintain its long-term dividend and pursue bolt-on acquisitions with about $7 billion in cash, despite peers making larger biotech purchases. During a second quarter earnings call, Bourla dismissed suggestions to cut the shareholder dividend to fund more aggressive mergers and acquisitions.
Bourla said, “Look, guys, Pfizer has placed the business development bets already. And we are executing on that,” highlighting that Pfizer has spent $80 billion on transactions since 2022. Notable deals include acquiring Seagen for approximately $44.56 billion, Biohaven’s migraine portfolio for $12.56 billion, and Metsera for $10 billion.
He added that opportunities remain in oncology, immuno-inflammation, or primary care areas such as obesity, with vaccine deals less likely due to limited innovation in the marketplace. “I think that we have invested a lot, and we will continue doing small pieces,” Bourla said.
Pfizer returned $4.9 billion in cash dividends to shareholders during the first half of the year—equivalent to 86 cents per share—and allocated $5.3 billion toward internal research and development projects alongside smaller amounts for business development transactions.
“We feel extremely confident that even in the most stretched scenarios that we are running, we will be able to maintain our dividend,” Bourla said. “I want, once and for all, to make that clear to all that the dividend will be maintained.”
The company also announced an additional $2.5 billion in savings through further cost reductions focused on technology and simplification efforts across commercial operations, research and development (R&D), and manufacturing functions as part of ongoing restructuring efforts.
