Pfizer Says Its Biggest Headwinds Are Finally Easing. Does That Change the Story for This Ultra-High-Yield Dividend Stock?

The past few years have been challenging for Pfizer (NYSE: PFE). The company has faced macroeconomic problems, significantly lower sales from its coronavirus portfolio, and looming patent cliffs, including for its best-selling drug, the anticoagulant Eliquis. However, according to CEO Albert Bourla, Pfizer's headwinds are easing. Is he right?

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At a recent conference, Bourla argued that Pfizer faced three major headwinds in 2025: tariffs and drug-pricing policies, declining sales of its coronavirus products, and patent cliffs. He goes on to argue that the pharmaceutical giant has addressed the first challenge, notably by signing agreements with the U.S. government that granted the company a tariff break in exchange for selling certain medicines at reduced prices in the country. And while COVID-related sales remain unimpressive this year, as Bourla points out, Pfizer has performed fairly well and has generally exceeded Wall Street's earnings-per-share (EPS) estimates in recent years. In fact, over the past 10 quarterly reporting periods, the drugmaker has exceeded EPS expectations in all 10 while beating revenue expectations in nine of them, according to Bourla.

This suggests that the company's coronavirus business is no longer affecting Pfizer as much as it once did. What about upcoming patent cliffs? Pfizer has significantly expanded its pipeline and lineup through internal development and acquisitions. Many new products (or acquired ones) are performing well, according to Bourla, and should allow the company to mitigate the effect of patent cliffs. These products generate revenue at an annualized rate of $13 billion and are growing their sales faster than the rest of the business. Pfizer has also significantly decreased its expenses, cutting about $7.2 billion in costs. In short, Pfizer's business has improved significantly.

Still, the Eliquis patent cliff will be huge. Generics could enter the U.S. market by 2028. In the first six months of the year, Eliquis posted $4.6 billion in revenue, up 17% year over year. Ibrance, a cancer medicine, faces U.S. patent expiration in 2027. It generated $2.1 billion in revenue through June 30, up 2% compared to the year-ago period. And several other products are posting declining sales, even though they haven't yet lost patent exclusivity.