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Pfizer (PFE) COVID Vaccine & Pill Drive Stock Up This Year
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Pfizer’s (PFE - Free Report) stock has risen 38.8% this year so far, outperforming an increase of 14.5% for the industry.
Image Source: Zacks Investment Research
The increase is mainly related to Pfizer’s success with COVID-19 vaccine and medicines for treating the disease, which is expected to significantly boost its revenues in 2022 and thereafter. No company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now.
Here we discuss the reasons in detail.
A Successful COVID-19 Vaccine
Pfizer has been riding high on the success of its two-shot vaccine for COVID-19, Comirnaty, which it developed in partnership with Germany-based company, BioNTech (BNTX - Free Report) . The vaccine was developed in record time and is now approved for emergency/temporary use in several countries and has become a key contributor to the top line.
In the first nine months of 2021, the vaccine contributed $24.3 billion to Pfizer’s global sales. The pharma giant expects to record $36.0 billion in revenues from Comirnaty in 2021.
Pfizer and BioNTech have already shipped 2 billion doses to 152 countries. They expect to manufacture in total up to 3 billion doses by the end of December 2021. Pfizer and BioNTech’s vaccine was approved for younger patients (5-17 years) while a booster vaccine dose was also approved in the United States in 2021.
A COVID Anti-Viral Pill on Its Way
Pfizer has filed an application to the FDA seeking Emergency Use Authorization (EUA) for its promising oral antiviral candidate for COVID-19, Paxlovid, for the treatment of mild-to-moderate COVID-19 in patients at increased risk of hospitalizations or death
Pfizer’s regulatory application was based on clinical data from an interim analysis of a phase II/III study, EPIC-HR study. Data from the study showed that Paxlovid (administered in combination with low dose ritonavir) reduced the risk of hospitalization or death by 89% in non-hospitalized adult patients with COVID-19 at high risk of progressing to severe illness compared to placebo within three days of symptom onset. Similar benefits were observed in patients treated within five days of symptom onset.
At the recommendation of an independent Data Monitoring Committee, Pfizer stopped the study early due to the high efficacy observed in the interim analysis. Pfizer has begun rolling submissions in several countries including the United Kingdom, Australia, New Zealand and South Korea.
If approved by the FDA, Paxlovid can be the first oral antiviral medicine, which can be prescribed as at-home treatments for mild-to-moderate COVID-19 to reduce the severity of the disease. It can help prevent hospitalization in patients with a mild-to-moderate form of the disease but at a high risk of severe COVID-19.
Strong Pipeline and Collaboration Deals
Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth.
Pfizer has committed a significant number of resources toward the development of treatments in the fields of oncology, internal medicine, rare diseases, immunology, inflammation, vaccines and hospital. In fact, its phase III success rate, on a five-year rolling average, has improved from 70% to 85%.
In 2021, Pfizer’s Prevnar-20, a 20-valent pneumococcal conjugate vaccine, was approved in the United States in June. Prevnar-20 is under review in the EU.
Regulatory applications for some of its pipeline candidates are under review including Cibinqo/abrocitinib, its JAK selective inhibitor for atomic dermatitis and somatrogon to treat children with growth hormone deficiency. FDA decisions for these applications are expected next year, which, if approved, could bring in more new products for the company.
Key cancer drug, Bavencio (avelumab) is being evaluated for different types of cancer while being already approved for Merkel cell carcinoma and in combination with Inlyta for first-line treatment of advanced kidney cancer.
Pfizer is also working on expanding the labels of approved products like Ibrance, Xeljanz, Xalkori and Eliquis.
Conclusion
Overall, the Consumer Healthcare (CHC) joint venture with Glaxo (GSK - Free Report) and the merger of the Upjohn unit with Mylan (now Viatris [(VTRS - Free Report) ]) has made this Zacks #3 Ranked stock a smaller company with a diversified portfolio of innovative drugs and vaccines.
Pfizer’s CHC segment, an over-the-counter (OTC) medicines business, was merged with Glaxo’s unit in July 2019 to form a new joint venture (JV). Pfizer owns a 32% stake in the JV and Glaxo owns the remaining 68%.
Pfizer completed the transaction to divest its Upjohn Business and combine it with Mylan N.V. to form Viatris in November last year. However, its Upjohn unit was a cash-rich business and its divestiture to Viatris has reduced the company’s cash flow
Nonetheless, Pfizer’s stock is expected to continue to do well, driven by strong growth of key brands like Ibrance, Inlyta and Eliquis, revenue contribution from its COVID-19 vaccine and potentially the COVID pill and regular positive pipeline and regulatory updates.
Image: Bigstock
Pfizer (PFE) COVID Vaccine & Pill Drive Stock Up This Year
Pfizer’s (PFE - Free Report) stock has risen 38.8% this year so far, outperforming an increase of 14.5% for the industry.
The increase is mainly related to Pfizer’s success with COVID-19 vaccine and medicines for treating the disease, which is expected to significantly boost its revenues in 2022 and thereafter. No company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now.
Here we discuss the reasons in detail.
A Successful COVID-19 Vaccine
Pfizer has been riding high on the success of its two-shot vaccine for COVID-19, Comirnaty, which it developed in partnership with Germany-based company, BioNTech (BNTX - Free Report) . The vaccine was developed in record time and is now approved for emergency/temporary use in several countries and has become a key contributor to the top line.
In the first nine months of 2021, the vaccine contributed $24.3 billion to Pfizer’s global sales. The pharma giant expects to record $36.0 billion in revenues from Comirnaty in 2021.
Pfizer and BioNTech have already shipped 2 billion doses to 152 countries. They expect to manufacture in total up to 3 billion doses by the end of December 2021. Pfizer and BioNTech’s vaccine was approved for younger patients (5-17 years) while a booster vaccine dose was also approved in the United States in 2021.
A COVID Anti-Viral Pill on Its Way
Pfizer has filed an application to the FDA seeking Emergency Use Authorization (EUA) for its promising oral antiviral candidate for COVID-19, Paxlovid, for the treatment of mild-to-moderate COVID-19 in patients at increased risk of hospitalizations or death
Pfizer’s regulatory application was based on clinical data from an interim analysis of a phase II/III study, EPIC-HR study. Data from the study showed that Paxlovid (administered in combination with low dose ritonavir) reduced the risk of hospitalization or death by 89% in non-hospitalized adult patients with COVID-19 at high risk of progressing to severe illness compared to placebo within three days of symptom onset. Similar benefits were observed in patients treated within five days of symptom onset.
At the recommendation of an independent Data Monitoring Committee, Pfizer stopped the study early due to the high efficacy observed in the interim analysis. Pfizer has begun rolling submissions in several countries including the United Kingdom, Australia, New Zealand and South Korea.
If approved by the FDA, Paxlovid can be the first oral antiviral medicine, which can be prescribed as at-home treatments for mild-to-moderate COVID-19 to reduce the severity of the disease. It can help prevent hospitalization in patients with a mild-to-moderate form of the disease but at a high risk of severe COVID-19.
Strong Pipeline and Collaboration Deals
Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth.
Pfizer has committed a significant number of resources toward the development of treatments in the fields of oncology, internal medicine, rare diseases, immunology, inflammation, vaccines and hospital. In fact, its phase III success rate, on a five-year rolling average, has improved from 70% to 85%.
In 2021, Pfizer’s Prevnar-20, a 20-valent pneumococcal conjugate vaccine, was approved in the United States in June. Prevnar-20 is under review in the EU.
Regulatory applications for some of its pipeline candidates are under review including Cibinqo/abrocitinib, its JAK selective inhibitor for atomic dermatitis and somatrogon to treat children with growth hormone deficiency. FDA decisions for these applications are expected next year, which, if approved, could bring in more new products for the company.
Key cancer drug, Bavencio (avelumab) is being evaluated for different types of cancer while being already approved for Merkel cell carcinoma and in combination with Inlyta for first-line treatment of advanced kidney cancer.
Pfizer is also working on expanding the labels of approved products like Ibrance, Xeljanz, Xalkori and Eliquis.
Conclusion
Overall, the Consumer Healthcare (CHC) joint venture with Glaxo (GSK - Free Report) and the merger of the Upjohn unit with Mylan (now Viatris [(VTRS - Free Report) ]) has made this Zacks #3 Ranked stock a smaller company with a diversified portfolio of innovative drugs and vaccines.
Pfizer’s CHC segment, an over-the-counter (OTC) medicines business, was merged with Glaxo’s unit in July 2019 to form a new joint venture (JV). Pfizer owns a 32% stake in the JV and Glaxo owns the remaining 68%.
Pfizer completed the transaction to divest its Upjohn Business and combine it with Mylan N.V. to form Viatris in November last year. However, its Upjohn unit was a cash-rich business and its divestiture to Viatris has reduced the company’s cash flow
Nonetheless, Pfizer’s stock is expected to continue to do well, driven by strong growth of key brands like Ibrance, Inlyta and Eliquis, revenue contribution from its COVID-19 vaccine and potentially the COVID pill and regular positive pipeline and regulatory updates.
Pfizer currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here