Biotech
Monday, March 11th, 2024 3:35 pm EDT
Key Points
- Pfizer is shifting its focus from Covid-related products to cancer drugs in an effort to recover from a challenging year, characterized by declining Covid business and disappointing launches of other products.
- The company’s strategic move towards oncology was highlighted during an investor event, where it emphasized the integration with Seagen and the potential for its expanded oncology pipeline to yield blockbuster medicines by 2030.
- Pfizer’s long-term commercial strategy involves prioritizing biologic drugs in its oncology division, anticipating increased revenue potential and better protection against competition. Additionally, the company is diversifying its portfolio beyond oncology, focusing on vaccines, metabolic, and inflammatory conditions, with ongoing developments in areas like sickle cell disease and obesity treatments.
Pfizer, amidst a turbulent year marked by the decline of its Covid business, is pivoting its focus towards oncology drugs in a bid to recuperate its financial standing. This strategic shift was underscored during a four-hour investor event, accompanied by a high-profile Super Bowl ad promoting its endeavor to combat cancer. The company, which witnessed a drastic 40% fall in shares in 2023, has been striving to restore investor confidence following disappointing outcomes in various areas such as the launch of new products and revenue forecasts. Notably, Pfizer’s acquisition of Seagen for $43 billion has bolstered its oncology drug pipeline, potentially leading to the development of at least eight blockbuster medicines by 2030. Despite the optimistic outlook, analysts caution that the fruition of these cancer drugs may take several years, posing inherent risks associated with mid-stage development.
Pfizer’s long-term commercial strategy revolves around its newly established oncology division, spearheaded by Chris Boshoff. This unit, a result of the integration with Seagen, boasts an extensive portfolio of experimental drugs and treatments. Pfizer envisages a significant revenue share from its oncology franchise by 2030, with a focus on introducing new drugs and expanding indications for existing ones. A pivotal aspect of Pfizer’s strategy is its transition towards biologic drugs, aiming to increase their proportion in the pipeline from 6% to 65% by 2030. Biologics, known for their high cost and durability, are viewed as a more resilient revenue stream compared to small-molecule drugs, especially amidst impending patent expirations and potential regulatory pressures.
The pharmaceutical giant also outlined its core cancer types of focus, including breast, genitourinary, thoracic, and hematology-oncology cancers. Pfizer anticipates a decline in the contribution of breast cancer to its oncology sales due to the impending loss of exclusivity of its top-selling drug, Ibrance. However, the company is optimistic about potential growth drivers within this segment, such as atirmociclib, currently undergoing clinical trials. Similarly, Pfizer projects substantial revenue contributions from genitourinary cancer, driven by experimental drugs like disitamab vedotin. The company’s commitment to innovation is evident in its collaboration with Seagen to develop next-generation antibody-drug conjugates (ADCs), showcasing a promising pipeline across various cancer types.
Beyond oncology, Pfizer is diversifying its portfolio to include vaccines and treatments for metabolic and inflammatory conditions. While the company continues to explore avenues in Covid vaccines, it is also prioritizing bacterial and viral shots, alongside developments in oral treatments for conditions like sickle cell disease and cancer cachexia. Additionally, Pfizer is venturing into the obesity market with experimental weight-loss pills, reflecting its response to growing demand and potential market opportunities. As Pfizer navigates its transition towards oncology and expands its therapeutic portfolio, the pharmaceutical industry awaits the impact of these strategic endeavors on the company’s long-term growth trajectory and its broader contribution to healthcare innovation.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/10/pfizer-is-betting-big-on-cancer-drugs-after-covid-decline.html
