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# Pfizer: Paying Too Much To Boost Revenues (Archive)
- URL: https://www.huntingalphas.com/pfizer-paying-too-much-to-boost-revenues-archive/
- Published: 2024-01-06T10:10:00.000Z
- Updated: 2026-02-27T06:12:37.000Z
- Description: Pfizer’s rich M&A bets risk turning Seagen into an expensive capital allocation mistake.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, PFE, Healthcare

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Pfizer has generally paid high prices for M&A, above industry norms (20x vs 10x EV/Revenue deal multiples).
- Oncology has been a lagging business for Pfizer despite being a hot growth area (1.5% 3-yr CAGR for Oncology vs 4.5% 3-yr CAGR for non-COVID related revenues).
- Seagen may boost Oncology sales but the price paid is hefty (22.7x EV/Revenue, implied \~15x PE; 44% premium to sectoral 1-yr fwd PEs).
- Management's execution record has been patchy; multiple guidance cuts and margin misses in FY23 due to overestimations of COVID-related sales.
- Pfizer is relatively more expensive vs its peers (19.9x 1-yr fwd PE vs 14.5x 1-yr fwd PE of peers), reducing the margin of safety for buys.

Read the full article [here](https://seekingalpha.com/article/4661458-pfizer-paying-too-much-to-boost-revenues?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*