Pfizer sees steady cash flows from a basket of diverse drugs, and the company's large size confers significant competitive advantages in developing new drugs. This heft, combined with a broad portfolio of patent-protected drugs, has helped Pfizer build an economic moat around its business. In addition, Pfizer's 2020 divestment of its off-patent division Upjohn to create a new company (Viatris) in combination with Mylan, as well as its consumer business spinoff (Haleon) in 2022, should help focus the remaining innovative business. However, we think high price tags for acquisitions have kept ROICs at Pfizer lower than at many large-pharma peers.