Pfizer (PFE) stock tumbled Tuesday, crashing into its 50-day line, after the drugmaker missed Wall Street's earnings forecast following a suite of acquisitions.

Leerink Partners analyst David Risinger says it's "not a major surprise." Pfizer spent $10 billion to acquire obesity drugmaker Metsera after a bidding war with Novo Nordisk (NVO). It has also signed a handful of licensing deals with companies in the cancer and weight-loss spaces.

For the year, Pfizer expects to earn an adjusted $2.80 to $3 per share. The top side of Pfizer's view lagged analysts' call for $3.05.

"Recall that in conjunction with 3Q25 results, PFE conveyed that it expected $0.16 of dilution from the MTSR acquisition prior to the bidding war with NVO, and $0.06 of dilution from the 3SBio licensing deal," Risinger said in a report. "Consensus EPS had not fully reflected this dilution."

The company also called for $59.5 billion to $62.5 billion in sales. At the midpoint, sales would fall by $1 billion vs. projections for $62 billion in 2025 sales. The high end of the outlook came in light, though the midpoint beat calls for $61.6 billion in sales, according to FactSet.

Pfizer stock fell 3.4%, closing at 25.53. Shares are forming a flat base with a buy point at 27.69, MarketSurge shows. The stock remains above its key moving averages, but touched a floor at its 50-day line.

Pfizer's Looming Patent Cliff

David Barasa, a portfolio manager with Gabelli Funds, noted Pfizer is also facing patent cliff for some of its biggest products. By 2028, Pfizer will lose exclusivity for blood thinner Eliquis, cancer treatments Xtandi and Ibrance, and Prevnar 13, its pneumococcal vaccine. This means less expensive generic copycats will be coming to take share.

Last year, those four products generated almost $20.2 billion in sales, representing about 32% of the company's total topline. Analysts currently expect Pfizer's sales to decline every year from 2025 to 2029, with a small uptick in revenue in 2030.

"Over the next 3-5 years, the company is navigating a 2025-2028 trough period, supported by roughly $7 billion of cost reductions intended to stabilize margins and reinvest behind launch and pipeline assets," Barasa said in an email to Investor's Business Daily.

But in the back half of the decade, Barasa expects an inflection from Pfizer's pipeline of obesity and cancer treatments. Those could "offset the bulk of the projected patent cliff." He predicts drugs from Seagen and Metsera will drive future growth. Seagen makes antibody drug conjugates, a targeted form of chemotherapy. Pfizer acquired Seagen for $43 billion in December 2023.

Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.