Shares of Pfizer Inc. (NYSE: PFE) have gained over 8% in the past one year. Pfizer is at the forefront of the COVID-19 vaccination drive and it has established a strong foothold in this space. Even without its COVID-19 vaccine, Pfizer’s fundamentals are pretty strong. In fiscal year 2020, the company’s revenues grew 2% year-over-year to $41.9 billion while its adjusted EPS was up 16% to $2.22.
Looking ahead, Pfizer’s growth prospects appear bright and strong. Here are two main areas that provide plenty of opportunity for the company to rake in yields:
Pfizer’s oncology segment has delivered consistent growth with revenues of around $11 billion in 2020. It has a broad portfolio with 24 medicines across 30 types of cancer. Around half of the revenue within this portfolio comes from Ibrance, which grew 9% in 2020. The other medicines grew 36% operationally, led by the biosimilars portfolio.
In terms of clinical development, there are over 275 clinical trials underway. On its recent investor day, the company said it started a couple of new trials in recent months, including two trials in colorectal cancer and one in first-line melanoma. It also has development programs in lung cancer, multiple myeloma and breast cancer.
Based on data provided by Pfizer, ALK positive lung cancer accounts for 3-5% of all lung cancer and up to 40% of patients with ALK-positive non-small cell lung cancer develop brain metastases. The results from the CROWN trial showed that Pfizer’s Lorbrena led to a 72% reduction in the risk of progression or death in patients with ALK-positive non-small cell lung cancer.
Pfizer sees a significant unmet need in multiple myeloma as only 50% of patients have survived past five years under the current standard of care. The company’s subcutaneous injection, elranatamab, was able to achieve complete response or stringent complete response in 30% of patients treated overall.
Looking ahead, Pfizer sees significant opportunity for its oncology portfolio within the G7 markets, which include the US, UK, Canada, France, Germany, Italy and Japan. The ALK-positive lung cancer market is estimated to reach approx. $2.3 billion in 2025 in G7. With Lorbrena, Pfizer expects its share in this market to peak by 25-30%.
The multiple myeloma market is projected to reach $34 billion by 2030 in G7 due to multi-drug combinations and increased duration of therapy. The company expects 15-20% peak share across multiple myeloma lines of therapy.
In HR-positive HER2-negative breast cancer, the market size is projected to reach approx. $14 billion by 2032 in G7. The company expects to gain a 30% share in this market.
This continues to be a winner for Pfizer. The company has guided for $15 billion in revenues for 2021. Last month, Pfizer announced that its vaccine demonstrated 100% efficacy in adolescents aged 12-15 and the company is seeking Emergency Use Authorization for the same. Once approved, this will garner significant market share for the company in this space.
Pfizer believes the COVID-19 vaccine may need to be repeated annually and sees an opportunity to raise prices once the pandemic subsides. The company is also working on booster doses to tackle the variants that have emerged. All in all, this provides a significant revenue opportunity for the company in the foreseeable future.
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