Pfizer’s Strategic Pivot: Oncology Deals and Pricing Strategy Under Investor Scrutiny

Pfizer finds itself at a strategic crossroads, balancing ambitious new research partnerships with significant price increases for its products. As the pharmaceutical giant navigates a post-pandemic landscape, its moves are drawing mixed reactions from major institutional shareholders.

The investment community is sending conflicting signals regarding Pfizer's outlook. In a dramatic shift, Gateway Investment Advisers LLC slashed its stake by 94.8% during the third quarter, offloading 1.06 million shares. Its remaining position is valued at approximately $1.5 million.

Conversely, Torray Investment Partners LLC demonstrated confidence by expanding its holdings. The firm purchased an additional 102,000 shares, marking a 15.7% increase in its position. A key attraction for income-focused investors remains the substantial dividend yield, currently around 6.8%. The quarterly payout stands at $0.43 per share, with an ex-dividend date of January 23, 2026. However, analysts note the payout ratio is nearing 100%, raising sustainability questions if earnings growth remains stagnant.

A Major Oncology Partnership Takes Shape

On January 6, 2026, Pfizer unveiled a multi-year collaboration with Cartography Biosciences, marking a significant push into next-generation cancer treatments. The alliance focuses on developing tumor-selective antigens for novel cancer immunotherapies.

Under the agreement, Cartography will receive an upfront payment of about $65 million. The total potential value of the deal could exceed $865 million if all development and commercial milestones are achieved. This partnership leverages Cartography's ATLAS and SUMMIT platforms, aiming to bolster Pfizer's drug pipeline. The strategic move is seen as critical for offsetting revenue pressure from the impending patent expirations of legacy blockbusters like Eliquis and Ibrance, with oncology positioned as a primary growth engine now that COVID-19-related sales have normalized.

Should investors sell immediately? Or is it worth buying Pfizer?

Widespread Price Adjustments for 2026

Simultaneously, Pfizer has implemented a broad pricing initiative for the 2026 fiscal year, increasing list prices for approximately 80 prescription medicines. A notable adjustment is a 15% price hike for its COVID-19 vaccine, Comirnaty. The company cites rising research and development expenditures alongside increased operational costs as justification for these adjustments.

Market experts view this pricing power as a mechanism to help stabilize profit margins. Nevertheless, the impact on demand remains uncertain, especially within a shifting political climate. Coincidentally, on the same day, the U.S. Centers for Disease Control and Prevention (CDC), under a new administration, rescinded several childhood vaccine recommendations, including those for rotavirus and influenza. This policy change has introduced fresh uncertainty across the entire vaccine sector.

Upcoming Financial Results and the Road Ahead

All eyes are on Pfizer's upcoming earnings report scheduled for February 3, 2026, which will detail fourth-quarter 2025 performance. Analyst consensus projects earnings per share of about $0.56, representing an 11.1% decline compared to the same period last year.

Looking at the full 2026 year, the company has provided revenue guidance in the range of $59.5 to $62.5 billion. Adjusted earnings per share are forecasted to be between $2.80 and $3.00. The central challenge for Pfizer is whether its renewed focus on oncology and assertive pricing strategy can sufficiently counterbalance the declining revenue from its COVID-19 product portfolio. The divergent actions of its largest investors perfectly mirror the market's core dilemma: is Pfizer poised for an undervalued comeback, or is it facing a value trap with diminishing growth prospects?