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Here's Why Pfizer (PFE) Appears Strongly Placed for 2022
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Pfizer (PFE - Free Report) 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 worldwide and fully approved in the United States. Pfizer/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.
Pfizer and BioNTech’s Comirnaty 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. The fourth quarter and full-year 2021 results are expected to be announced on Feb 8.
In the last week of December 2021, the FDA granted Emergency Use Authorization (EUA) to Pfizer’s promising oral antiviral candidate for COVID-19, Paxlovid, for the treatment of mild-to-moderate COVID-19 in adult and pediatric patients at increased risk of hospitalizations or death. The approval of Paxlovid can complement Comirnaty to boost revenues in 2022.
Pfizer’s stock has risen 66.8% in the past year compared with an increase of 26% for the industry.
Image Source: Zacks Investment Research
Paxlovid is the first oral antiviral medicine, which can be prescribed as an at-home treatment to help fight mild-to-moderate COVID-19 infection. It can help prevent hospitalization in patients with a mild-to-moderate form of the disease but at high risk of severe COVID-19 and thus lower some of the pressure facing the healthcare and hospital systems.
Paxlovid’s approval 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) 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.
President Biden called Paxlovid a “promising new treatment option” that will lower rates of hospitalization and death in a statement issued after the FDA’s EUA
Another large drugmaker, Merck (MRK - Free Report) along with partner Ridgeback Biotherapeutics also gained EUA for its oral antiviral pill, molnupiravir, for treating high-risk adults with mild-to-moderate COVID-19 last month. However, the drug can be prescribed to only those patients for whom alternative COVID-19 treatment options authorized by the FDA are not accessible or clinically appropriate.
Pfizer’s Paxlovid has proved more effective than Merck’s molnupiravir, which reduced the risk of hospitalization or death by approximately 30% in non-hospitalized at-risk adult patients with mild or moderate COVID-19, per final data from the MOVe-OUT phase III study. Nonetheless, both pills are being seen as crucial to fight the pandemic and reduce pressure on hospitals.
In other pipeline successes, Pfizer’s Prevnar-20, a 20-valent pneumococcal conjugate vaccine, was approved in the United States this year. Last month, Pfizer announced a definitive agreement to acquire Arena Pharmaceuticals for $100 per share or $6.7 billion in an all-cash deal.
The deal will add Arena’s lead candidate, etrasimod, a next-generation and selective sphingosine-1-phosphate (S1P) receptor modulator, to Pfizer’s inflammation and immunology pipeline.
Arena’s pipeline also includes pipeline candidates like temanogrel and APD41, which are in mid-stage development for cardiovascular diseases.
Pfizer may as well make another bolt-on acquisition announcement next year, given its strong cash position after the success of Comirnaty.
We believe that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now. While the vaccine should continue to boost revenues in 2022, Paxlovid should also become an important top-line driver, with sharply rising infection cases due to the the Omicron variant. Paxlovid is expected to work well against the Omicron variant, while most of the monoclonal antibody drugs appear to be largely ineffective against the same.
Overall, Pfizer’s stock is expected to continue to do well in 2022, driven by strong growth of key brands like Ibrance, Inlyta and Eliquis, revenue contribution from its COVID-19 vaccine and the COVID pill and regular positive pipeline and regulatory updates.
Estimates for Pfizer’s 2022 earnings have gone up from $4.08 to $4.21 over the past 60 days
Image: Bigstock
Here's Why Pfizer (PFE) Appears Strongly Placed for 2022
Pfizer (PFE - Free Report) 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 worldwide and fully approved in the United States. Pfizer/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.
Pfizer and BioNTech’s Comirnaty 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. The fourth quarter and full-year 2021 results are expected to be announced on Feb 8.
In the last week of December 2021, the FDA granted Emergency Use Authorization (EUA) to Pfizer’s promising oral antiviral candidate for COVID-19, Paxlovid, for the treatment of mild-to-moderate COVID-19 in adult and pediatric patients at increased risk of hospitalizations or death. The approval of Paxlovid can complement Comirnaty to boost revenues in 2022.
Pfizer’s stock has risen 66.8% in the past year compared with an increase of 26% for the industry.
Paxlovid is the first oral antiviral medicine, which can be prescribed as an at-home treatment to help fight mild-to-moderate COVID-19 infection. It can help prevent hospitalization in patients with a mild-to-moderate form of the disease but at high risk of severe COVID-19 and thus lower some of the pressure facing the healthcare and hospital systems.
Paxlovid’s approval 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) 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.
President Biden called Paxlovid a “promising new treatment option” that will lower rates of hospitalization and death in a statement issued after the FDA’s EUA
Another large drugmaker, Merck (MRK - Free Report) along with partner Ridgeback Biotherapeutics also gained EUA for its oral antiviral pill, molnupiravir, for treating high-risk adults with mild-to-moderate COVID-19 last month. However, the drug can be prescribed to only those patients for whom alternative COVID-19 treatment options authorized by the FDA are not accessible or clinically appropriate.
Pfizer’s Paxlovid has proved more effective than Merck’s molnupiravir, which reduced the risk of hospitalization or death by approximately 30% in non-hospitalized at-risk adult patients with mild or moderate COVID-19, per final data from the MOVe-OUT phase III study. Nonetheless, both pills are being seen as crucial to fight the pandemic and reduce pressure on hospitals.
In other pipeline successes, Pfizer’s Prevnar-20, a 20-valent pneumococcal conjugate vaccine, was approved in the United States this year. Last month, Pfizer announced a definitive agreement to acquire Arena Pharmaceuticals for $100 per share or $6.7 billion in an all-cash deal.
The deal will add Arena’s lead candidate, etrasimod, a next-generation and selective sphingosine-1-phosphate (S1P) receptor modulator, to Pfizer’s inflammation and immunology pipeline.
Arena’s pipeline also includes pipeline candidates like temanogrel and APD41, which are in mid-stage development for cardiovascular diseases.
Pfizer may as well make another bolt-on acquisition announcement next year, given its strong cash position after the success of Comirnaty.
We believe that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now. While the vaccine should continue to boost revenues in 2022, Paxlovid should also become an important top-line driver, with sharply rising infection cases due to the the Omicron variant. Paxlovid is expected to work well against the Omicron variant, while most of the monoclonal antibody drugs appear to be largely ineffective against the same.
Overall, Pfizer’s stock is expected to continue to do well in 2022, driven by strong growth of key brands like Ibrance, Inlyta and Eliquis, revenue contribution from its COVID-19 vaccine and the COVID pill and regular positive pipeline and regulatory updates.
Estimates for Pfizer’s 2022 earnings have gone up from $4.08 to $4.21 over the past 60 days
Pfizer currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.