As companies begin considering moving their manufacturing operations outside of China in order to avoid Tariffs that will likely be imposed by President-Elect Trump, Pfizer (PFE) has decided to take the opposite approach. In fact, the drugmaker plans to invest $1 billion in China between 2025 and 2030 as part of its new “Pfizer China 2030 Strategy,” which looks to expand drug R&D in the country.
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According to Jean-Christophe Pointeau, head of Pfizer’s China operations, the strategy aims to introduce 60 new drugs and indications to Chinese patients by 2030. Its core pillars include speeding up drug launches, improving diagnostic and treatment standards, and supporting the growth of the biotech sector in China. Pfizer also intends to establish a new R&D center in Beijing.
Pointeau highlighted that China has significant market potential for Pfizer, especially since about 25% of its 1.4 billion population is aged 60 or older.
Is PFE a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PFE stock based on seven Buys, 13 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 6% decline in its share price over the past year, the average PFE price target of $32.47 per share implies 21.2% upside potential.
