Categories Analysis, Health Care

These two factors will play out in favor of Pfizer (PFE) going forward

Pfizer expects to generate approx. $15 billion in revenue from the COVID-19 vaccine in 2021

Shares of Pfizer Inc. (NYSE: PFE) have gained over 8% in the past 12 months. The company had a huge win with its COVID-19 vaccine which is currently being used worldwide and is set to generate strong revenue over the coming years. In addition, the company has a pipeline of products that are expected to yield stable earnings going forward. These two factors are expected to help drive growth for the company over the long term.

COVID-19 vaccine

Pfizer was one of the companies that made the vaccine against the coronavirus available at the earliest followed by Moderna (NASDAQ: MRNA). Last month, in its Q4 earnings report, Pfizer said it expects to generate approx. $15 billion in revenue from the COVID-19 vaccine in 2021.

Earlier this month, at an analyst event, Pfizer said the emergence of variants to the original virus remains a reality that needs to be tackled over the coming years. The company said it is working on a booster dose of its vaccine in people who have already taken the vaccination. This dose, which will be administered 6-12 months after the second one, will count as the third dose and will be measured for its effect against the variance.

Pfizer and its partner BioNTech (NASDAQ: BNTX) are also testing the safety and efficacy of its COVID-19 vaccine in pregnant women.

Despite its head start, Pfizer does face tough competition from other companies’ vaccines. Of this, the one from Johnson & Johnson (NYSE: JNJ) is one to keep an eye on as its single-dose nature gives it a significant edge over the others.   

Pipeline

Pfizer has a pipeline of products that are expected to drive growth in the coming years. One of these is abrocitinib, which is intended for the treatment of atopic dermatitis. The company has submitted its New Drug Application which is being evaluated by the FDA. Pfizer believes there is a significant unmet need in atopic dermatitis and estimates a $30 billion potential for advanced systemics within this market.

Pfizer recently received approval for Lorbrena, which is intended for the treatment of anaplastic lymphoma kinase (ALK)-positive non-small cell lung cancer. Non-small cell lung cancer accounts for around 80-85% of lung cancers.

Pfizer also sees significant opportunity for its Ibrance franchise for the treatment of breast cancer. Ibrance saw growth throughout 2020 and the momentum has continued thus far in 2021. The company holds over 85% of the market share of all first-line patients in the CDK class and believes there is significant opportunity for growth in this space.

The revenue opportunity from the COVID-19 vaccine, the recent approvals as well as the spin-off of the Upjohn business have all generated a bullish sentiment around the company in general.

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