FPA Queens Road Value Fund on Pfizer Inc.
Thesis
Pfizer was among the fund’s best quarterly contributors as investors began to look through the decline in pandemic-related sales. Its COVID-related revenue had fallen from approximately $11 billion in 2024 toward an expected $4 billion in 2026. With this declining revenue base approaching a less severe drag, the newer and acquired product portfolio has a clearer path to drive results. The managers frame this as an earnings-transition story rather than simply a momentum-driven rally.
“COVID-related revenue has declined from about $11 billion in 2024 to roughly $4 billion expected in 2026, leaving the newer and acquired product portfolio to drive results.”
Key risks
- The legacy COVID-related revenue stream is still shrinking.
- Newer and acquired medicines must perform sufficiently well to offset the shrinking pandemic business.