Pfizer Inc. (PFE.US) Q3 earnings exceed expectations and once again raise full-year profit guidance, striving to acquire weight-loss drug company Metsera.

Pfizer Inc. (PFE.US) announced better-than-expected performance in the third quarter of 2025 and raised its full-year profit forecast. The company stated that ongoing cost-cutting measures helped offset the pressure from slowing sales growth, providing funding for its acquisition of the weight-loss drug startup company Metsera (MTSR.US). According to the financial report, Pfizer Inc.'s Q3 revenue decreased by 6% year-on-year to $16.654 billion, beating analysts' expectations of $16.5 billion; adjusted net profit was $4.949 billion, down 18% year-on-year; adjusted earnings per share were $0.87, surpassing analysts' expectations of $0.64. Pfizer Inc.'s core drug sales were mixed in the third quarter. Specifically, sales of the COVID-19 vaccine Comirnaty decreased by 19% year-on-year to $1.151 billion, roughly meeting market expectations. The company attributed this decline to the narrowing of vaccine eligibility in the United States and delays in approval for the next-generation vaccine. Sales of the pneumonia vaccine Prevnar decreased by 3% year-on-year to $1.742 billion, also in line with market expectations. However, Pfizer Inc.'s leading position in this area is being challenged by a new vaccine from Merck & Co., Inc. (MRK. US), which has shown better sales performance than expected in the quarter. Additionally, sales for the heart failure drug Vyndaqel increased by 10% year-on-year to $1.591 billion, but fell short of analysts' expectations of $1.68 billion. The drug is used to treat a rare disease called ATTR cardiomyopathy and is now part of a high-profit market where only a few pharmaceutical companies compete. Looking ahead, Pfizer Inc. forecasts full-year revenue for 2025 to be between $61 billion and $64 billion. The company also expects full-year adjusted earnings per share to be between $3.00 and $3.15, higher than the previous forecast of $2.90 to $3.10. This is the second time Pfizer Inc. has raised its full-year profit forecast this year. Regarding the antitrust lawsuit to prevent Novo Nordisk A/S Sponsored ADR Class B from acquiring Metsera: As demand for COVID-related products declines faster than expected by management, Pfizer Inc.'s performance has been impacted, and its stock price has fallen approximately 60% since its peak during the pandemic. Currently, Pfizer Inc. is still working to rebuild from the impact of the pandemic by cutting costs and pursuing acquisitions to drive future growth. For years, Pfizer Inc. has been trying to enter the rapidly growing weight-loss drug market but has faced setbacks. This market, currently dominated by Eli Lilly (LLY.US) and Novo Nordisk A/S Sponsored ADR Class B (NVO.US), is expected to reach $95 billion by 2030. In September, Pfizer Inc. announced its acquisition of Metsera for $47.50 per share in cash, with a total deal value of around $4.9 billion. If certain development milestones are met, Pfizer Inc. will further pay $22.50 per share, making the total value of the deal $7.3 billion. Metsera is one of the most promising companies in the weight-loss drug market, developing various experimental weight-loss drugs, including an innovative drug with potential lower injection frequency than Novo Nordisk A/S Sponsored ADR Class B and Eli Lilly's existing products. However, Novo Nordisk A/S Sponsored ADR Class B last week made a cash offer of $56.50 per share, with an enterprise value of around $6 billion. If certain milestones are met, an additional $3 billion will be paid. Metsera considers Novo Nordisk A/S Sponsored ADR Class B's offer more attractive and has given Pfizer Inc. four days to make a better offer. In response, Pfizer Inc. filed a lawsuit against Metsera and Novo Nordisk A/S Sponsored ADR Class B, alleging that the latest merger agreement between the two weight-loss drug developers violates U.S. federal antitrust law. This is the second lawsuit filed by Pfizer Inc. in four days to protect its earlier acquisition agreement unexpectedly disrupted by Novo Nordisk A/S Sponsored ADR Class B. In the complaint, Pfizer Inc. accuses Novo Nordisk A/S Sponsored ADR Class B's proposed acquisition of Metsera of stifling a smaller competitor to further consolidate its leadership position in the obesity treatment drug market. The complaint also alleges that Metsera's controlling shareholders - including Validae Health, Population Health Partners, among others - conspired with Novo Nordisk A/S Sponsored ADR Class B and Metsera to advance this anti-competitive plan. It is worth noting that last Friday, Pfizer Inc. filed its first lawsuit against Novo Nordisk A/S Sponsored ADR Class B and Metsera, seeking to prevent Metsera from breaking the agreement. In its first lawsuit, Pfizer Inc. argued that Novo Nordisk A/S Sponsored ADR Class B's acquisition offer could not be considered a "superior proposal" partly because the deal is likely to fail regulatory scrutiny. Both Novo Nordisk A/S Sponsored ADR Class B and Metsera have stated that they will defend against the allegations made in the court regarding Pfizer Inc.'s initial lawsuit.