Can Pfizer's Dividend Survive the Patent Cliff? This $10.5 Billion Cancer Bet Could Hold the Answer.

Pfizer’s net income is under pressure, and likely will be for the foreseeable future.

Although its replenished pipeline and portfolio should help, Pfizer paid a sizable price for this growth.

A recent deal with a Chinese biopharma offers a more affordable way for Pfizer to grow its top and bottom lines.

If you keep regular tabs on pharmaceutical giant Pfizer (NYSE: PFE) , then you know it hasn't yet restored the revenue lost due to the wind-down of the COVID-19 pandemic; the world just doesn't need its vaccine (Comirnaty) or its infection treatment (Paxlovid) as much as it did in 2022, when the company's top line surged to just over $100 billion. Last year's reported revenue was only $62.6 billion.

You may also know that Pfizer's top-selling drugs, like the blood thinner Eliquis and cancer treatments Ibrance and Xtandi, will lose their patent protection next year, while the patent for its pneumonia vaccine Prevnar 13 is even nearer its end. These three drugs alone accounted for over $20 billion of 2025 revenue.

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Connect the dots: Investors worried that Pfizer may not be able to continue paying its dividend aren't unwarranted in their concern. Shares have performed accordingly.

A recent deal struck with China-based biopharma outfit Innovent Biologics (OTC: IVBXF) , however, should alleviate at least some of this worry. And it should ease most of the concerns income investors have right now, if this partnership serves as a model for future ones.