Positive Data on Pfizer's Axitinib - Analyst Blog

Pfizer Inc. (PFE) recently announced positive data on its kidney cancer candidate, axitinib. Results from a phase III study (AXIS 1032) showed that axitinib significantly extended progression free survival (PFS) compared to Onyx Pharma/Bayer's (ONXX/BAYRY) Nexavar in previously treated patients with metastatic renal cell carcinoma (mRCC). Results also indicated a manageable safety profile for axitinib.

Pfizer intends to work with regulatory authorities to determine the regulatory path forward for axitinib for the renal cell carcinoma indication. According to the company, about 210,000 people across the world are diagnosed with kidney cancer every year. Almost 102,000 are expected to die from the disease. Although several treatment options are now available for kidney cancer, the five-year survival rate remains low at about 20%.

In addition to Onyx Pharma/Bayer's Nexavar, other treatment options in the kidney cancer market include Pfizer's Sutent and Torisel.

Pfizer is evaluating axitinib for other tumor types as well and is currently conducting a phase III study with the candidate in treatment-naïve and previously treated patients suffering from mRCC.

With Pfizer having faced a few pipeline setbacks recently, we were encouraged to see the positive data on axitinib. Earlier this year, Pfizer stated its intention to exit the areas of heart disease, obesity and bone health in order to commit more resources to the development of treatments for oncology, pain, inflammation, diabetes, Alzheimer's and schizophrenia. These are areas where the company believes it can take leading positions and ones where Wyeth has some complementary products and research.

Neutral on Pfizer

We currently have a Neutral recommendation on Pfizer, which is supported by a Zacks #3 Rank (short-term “Hold” rating). While Wyeth brings with it an attractive biologics platform and some complementary products and businesses, we do not believe they are enough to sustain long-term top-line growth.

We see the merger as mostly an opportunity for Pfizer to cut additional costs. Longer-term growth will depend on the success of drug development. The Lipitor patent expiration in 2011 remains a big concern.

 
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