Is Pfizer Stock Halal?
How much of Pfizer’s revenue comes from haram?
Pfizer develops biopharmaceutical products for a wide range of health disorders and diseases.
Pfizer’s products treat cardiovascular and metabolic diseases, cancers, infections, chronic immune and inflammatory diseases, amyloidosis, hemophilia, and endocrine diseases.
In addition, Pfizer has a lineup of vaccines for pneumococcal disease, meningococcal disease, tick-borne encephalitis, and COVID-19.
The contributions from each of Pfizer’s revenue segments in their Q1 2021 report were as follows:
Practical Islamic Finance concludes:
None of Pfizer’s revenue comes from anything inherently haram.
Does Pfizer rely on interest to operate?
For the Trailing Twelve Months as of April 4, 2021 (Numbers in thousands, U.S. Dollars):
Interest Income: $39,000
Total Revenue: $46,407,000
Interest Expense: $1,395,000
Total Expenses: $36,026,000
Interest Income / Revenue: 0.08%
Interest Expense / Total Expense: 3.87%
Practical Islamic Finance concludes:
Riba is used but not relied upon in Pfizer’s operations.
What is Pfizer’s Environmental, Social, and Governance (ESG) impact?
Environment
Pfizer has implemented more than 4,000 greenhouse gas reduction projects since 2000, which have led to a 60% reduction in greenhouse gas emissions.
In addition, according to Pfizer 60% of all its product packaging is returned to a Pfizer recycling center.
Social
Pfizer has an impressively high Glassdoor rating of 4.2 out of 5.0 from over 5,700 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
Pfizer has a checkered past in terms of governance for allegedly marketing and pushing drugs not approved by the FDA and conducting experimental trials without obtaining consent forms.
Since then, Pfizer entered a corporate integrity agreement with the Office of Inspector General of the United States Department of Health and Human Services.
The integrity agreement required Pfizer to make significant structural reforms within the business and publish to its website its post-approval commitments and any payments made to physicians by the company.
Practical Islamic Finance concludes:
Given Pfizer seems like it’s on the right course now, we are willing to give them the benefit of the doubt while recognizing that continued monitoring is required.
Pfizer has a net positive ESG impact.
Comfort Rating
From Pfizer’s business, financial, and ESG reviews, Practical Islamic Finance rates Pfizer stock as:
Comfortable to invest in from a Halal perspective.
Sources
Product Packaging | pfpfizeruscom
Meeting Our Environmental Sustainability Goals
UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q PFIZER INC.