Pfizer (PFE.US) reported better-than-expected Q3 2025 earnings and raised its full-year profit forecast, citing cost-cutting measures that helped offset slowing sales growth. The financial boost also supports its bid for weight-loss drug startup Metsera Inc. (MTSR.US).

Revenue for Q3 fell 6% year-over-year to $16.654 billion, surpassing analysts' consensus estimate of $16.5 billion. Adjusted net profit declined 18% to $4.949 billion, while adjusted EPS of $0.87 beat expectations of $0.64.

Pfizer’s core drug sales showed mixed performance. COVID-19 vaccine Comirnaty sales dropped 19% to $1.151 billion, in line with market expectations, due to narrowed U.S. vaccination recommendations and delayed approvals for next-gen vaccines. Pneumonia vaccine Prevnar sales dipped 3% to $1.742 billion, meeting estimates but facing competition from Merck’s (MRK.US) newer vaccine, which demonstrated broader protection in adults.

Heart failure drug Vyndaqel saw a 10% sales increase to $1.591 billion but missed the $1.68 billion consensus. The drug treats rare ATTR cardiomyopathy, a high-margin market contested by few pharma firms.

For full-year 2025, Pfizer now expects revenue between $61 billion and $64 billion and raised adjusted EPS guidance to $3.00–$3.15 from $2.90–$3.10—its second upward revision this year.

**Antitrust Lawsuit to Block Novo Nordisk’s Metsera Bid** With COVID-related demand declining faster than anticipated, Pfizer’s shares have fallen ~60% from pandemic highs. The company is pivoting to cost cuts and M&A for growth.

Pfizer has long sought entry into the booming weight-loss drug market, projected to reach $95 billion by 2030 and dominated by Eli Lilly (LLY.US) and Novo Nordisk (NVO.US). After its in-house program failed, Pfizer offered $47.50 per share ($4.9 billion enterprise value) for Metsera in September, with potential milestone payments raising the total to $7.3 billion.

However, Novo Nordisk recently countered with a $56.50/share ($6 billion) all-cash bid plus $3 billion in milestones, which Metsera deemed superior. Pfizer now has four business days to improve its offer.

Pfizer filed lawsuits against Metsera and Novo Nordisk, alleging their merger violates U.S. antitrust laws by eliminating a smaller competitor and entrenching Novo’s obesity-drug dominance. It also accused Metsera’s major shareholders, including Validae Health and Population Health Partners, of collusion.

This marks Pfizer’s second lawsuit in four days to salvage its deal after Novo’s unexpected bid. In its first suit, Pfizer argued Novo’s offer isn’t “superior” due to likely regulatory hurdles. Both Novo and Metsera plan to defend against the claims in court.