Pharmaceutical giant Pfizer Inc PFE is redirecting its strategic focus from COVID to cancer drugs to bounce back from a tumultuous year marked by a significant drop in its COVID-related business.
During last week’s investor event, Pfizer unveiled its intensified foray into oncology and had a 60-second Super Bowl ad that touted its initiative to “outdo cancer,” CNBC notes.
In a significant shift, Pfizer aims to increase the proportion of biologic drugs in its oncology pipeline from 6% to 65% by 2030. Biologics offer more extended revenue potential and could serve as a strategic move against potential pricing pressures from the Inflation Reduction Act.
This transition follows a challenging period for Pfizer, with a more than 40% decline in shares throughout 2023, wiping out over $100 billion in market value.
The pivot towards oncology was emphasized during investor day, when Pfizer detailed its post-acquisition plans after integrating with targeted cancer drugmaker Seagen.
The $43 billion Seagen acquisition doubled Pfizer’s oncology drug pipeline to 60 different experimental programs, CNBC notes. Although the company foresees at least eight blockbuster medicines by 2030, specific drugs were not disclosed.
Analysts anticipate a multi-year timeline for Pfizer’s mid-stage cancer drugs to show pivotal clinical trial data, adding an element of risk, the report further adds. Additionally, the existing oncology portfolio faces competitive pressure, with blockbuster drugs Ibrance and Xtandi experiencing declining revenues.
Pfizer unveiled a dedicated oncology unit led by Chris Boshoff, leveraging Pfizer and Seagen’s combined expertise and capabilities. Boshoff highlighted Pfizer’s global reach, with ten manufacturing sites producing cancer drugs across three continents.
Pfizer’s oncology division will focus on breast, genitourinary, thoracic, and hematology-oncology cancers. The company expects genitourinary cancer to dominate its oncology sales by 2030, driven by experimental ADCs and ongoing developments, including disitamab vedotin.
The hematology-oncology franchise is expected to account for 25% of the cancer unit’s sales by 2030, up from 10% in 2023.
Pfizer is actively broadening the application of its respiratory syncytial virus vaccine to include high-risk individuals aged 18 to 59. The company is also developing combination vaccines targeting multiple respiratory viruses.
Beyond vaccines, Pfizer is working on GBT601, an oral treatment for sickle cell disease, positioning it as a potentially more effective successor to its existing drug Oxbryta.
Investors are keenly interested in Pfizer’s ventures into obesity treatment. The company anticipates releasing early-stage trial data for a once-daily version of its experimental weight loss pill, danuglipron, in the 1H of 2024.
Price Action: PFE shares are up 3.10% at $28.07 on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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