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From Padcev to PF-08634404: Pfizer's Oncology Growth Push
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Key Takeaways
Pfizer's oncology revenues rose 3% to $4.17 billion in the second quarter of 2026.
Padcev sales climbed 23% to $667 million, helped by market share gains and a new indication.
Pfizer is advancing PF-08634404 in nine studies as it targets broader oncology growth by 2030.
Pfizer (PFE - Free Report) is a major global player in oncology, with a diversified presence across breast, genitourinary, thoracic, gastrointestinal and hematologic cancers. Its established portfolio of marketed cancer treatments is complemented by a robust pipeline covering a range of therapeutic approaches, including small-molecule drugs, antibody-drug conjugates and immuno-oncology biologics.
Oncology sales comprise around 27% of its total revenues. In the second quarter of 2026, oncology revenues increased 3% to $4.17 billion, with 2% operational growth, driven by drugs like Padcev, Lorbrena and Braftovi/Mektovi.
Lorbrena revenues rose 37% on an operational basis to $354 million in the second quarter. Adcetris sales fell 23% to $196 million. Inlyta revenues decreased 12% to $218 million. Braftovi/Mektovi revenues rose 23% to $223 million. New drug, Elrexfio, generated sales of $89 million in the quarter, up 5% year over year.
Padcev sales climbed 23% to $667 million, benefiting from strong demand trends mainly due to market share gains in first-line metastatic urothelial cancer and launch momentum from the new muscle-invasive bladder cancer indication.
Padcev is currently the most important growth driver for Pfizer’s oncology segment.The drug is being developed with Astellas and has become a key pillar of the company’s post-Seagen oncology strategy. Last month, the FDA expanded the indication of Padcev + Merck’s (MRK - Free Report) Keytruda to muscle-invasive bladder cancer regardless of cisplatin eligibility. This significantly expands its addressable market. The approval was backed by phase III data showing a 35% reduction in mortality risk. The broader indication could position the regimen as a practice-changing treatment for more than 42,000 U.S. patients.
Pfizer has ventured into the oncology biosimilars space and markets six biosimilars for cancer. Its oncology biosimilars contributed $768 million in sales in the first half of 2026, up 23% year over year.
Pfizer is also advancing its oncology clinical pipeline across areas such as breast, thoracic, gastrointestinal and blood cancers. Several oncology candidates have entered late-stage development, such as atirmociclib and sigvotatug vedotin. A regulatory application seeking approval of sasanlimab is also under review in the EU.
A key candidate in PFE’s oncology pipeline is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC, and additional phase II studies in small-cell lung cancer and gastroesophageal cancers. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.
Pfizer is also working on expanding the labels of approved oncology drugs like Padcev, Tuksya and Elrexfio, among others.
Overall, Pfizer’s oncology franchise is well positioned to remain a key growth driver, with Padcev, Lorbrena, Braftovi/Mektovi and Elrexfio providing near-term momentum while a broad late-stage pipeline offers additional avenues for expansion.
Competition in the Oncology Space
Pfizer is one of the largest drugmakers of cancer medicines. Other large players in the oncology space are J&J (JNJ - Free Report) , AstraZeneca (AZN - Free Report) , Merck and Bristol-Myers.
Oncology accounts for nearly 29% of J&J’s total revenues. In the first half of 2026, oncology revenues increased 16.9% to $14.4 billion on an operational basis, fueled by continued momentum for Darzalex and Erleada, although weaker demand for Imbruvica partially offset these gains. J&J’s new cancer drugs, Carvykti, Tecvayli, Talvey and Rybrevant/Lazcluze are contributing significantly to top-line growth driven by market share gains.
For AstraZeneca, oncology sales now comprise around 46% of total revenues. Sales in its oncology segment rose 15% at constant exchange rate to $14.1 billion in the first half of 2026. AstraZeneca’s strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Merck’s key oncology medicines are the PD-L1 inhibitor Keytruda and the PARP inhibitor Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for more than 55% of the company’s pharmaceutical sales. Keytruda recorded sales of $15.8 billion in the first half of 2026, up 4% year over year.
PFE’s Price Performance, Valuation and Estimates
Pfizer stock has risen 12.3% so far this year compared with an increase of 13.9% for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its five-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 9.48 forward earnings, significantly lower than 18.71 for the industry. However, the stock is trading above its five-year mean of 9.25.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings per share has risen from $2.96 to $2.98, while that for 2027 has risen from $2.85 to $2.94 over the past 30 days.
View the Zacks #1 Rank List
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From Padcev to PF-08634404: Pfizer's Oncology Growth Push
Key Takeaways
Pfizer (PFE - Free Report) is a major global player in oncology, with a diversified presence across breast, genitourinary, thoracic, gastrointestinal and hematologic cancers. Its established portfolio of marketed cancer treatments is complemented by a robust pipeline covering a range of therapeutic approaches, including small-molecule drugs, antibody-drug conjugates and immuno-oncology biologics.
Oncology sales comprise around 27% of its total revenues. In the second quarter of 2026, oncology revenues increased 3% to $4.17 billion, with 2% operational growth, driven by drugs like Padcev, Lorbrena and Braftovi/Mektovi.
Lorbrena revenues rose 37% on an operational basis to $354 million in the second quarter. Adcetris sales fell 23% to $196 million. Inlyta revenues decreased 12% to $218 million. Braftovi/Mektovi revenues rose 23% to $223 million. New drug, Elrexfio, generated sales of $89 million in the quarter, up 5% year over year.
Padcev sales climbed 23% to $667 million, benefiting from strong demand trends mainly due to market share gains in first-line metastatic urothelial cancer and launch momentum from the new muscle-invasive bladder cancer indication.
Padcev is currently the most important growth driver for Pfizer’s oncology segment.The drug is being developed with Astellas and has become a key pillar of the company’s post-Seagen oncology strategy. Last month, the FDA expanded the indication of Padcev + Merck’s (MRK - Free Report) Keytruda to muscle-invasive bladder cancer regardless of cisplatin eligibility. This significantly expands its addressable market. The approval was backed by phase III data showing a 35% reduction in mortality risk. The broader indication could position the regimen as a practice-changing treatment for more than 42,000 U.S. patients.
Pfizer has ventured into the oncology biosimilars space and markets six biosimilars for cancer. Its oncology biosimilars contributed $768 million in sales in the first half of 2026, up 23% year over year.
Pfizer is also advancing its oncology clinical pipeline across areas such as breast, thoracic, gastrointestinal and blood cancers. Several oncology candidates have entered late-stage development, such as atirmociclib and sigvotatug vedotin. A regulatory application seeking approval of sasanlimab is also under review in the EU.
A key candidate in PFE’s oncology pipeline is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC, and additional phase II studies in small-cell lung cancer and gastroesophageal cancers. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.
Pfizer is also working on expanding the labels of approved oncology drugs like Padcev, Tuksya and Elrexfio, among others.
Overall, Pfizer’s oncology franchise is well positioned to remain a key growth driver, with Padcev, Lorbrena, Braftovi/Mektovi and Elrexfio providing near-term momentum while a broad late-stage pipeline offers additional avenues for expansion.
Competition in the Oncology Space
Pfizer is one of the largest drugmakers of cancer medicines. Other large players in the oncology space are J&J (JNJ - Free Report) , AstraZeneca (AZN - Free Report) , Merck and Bristol-Myers.
Oncology accounts for nearly 29% of J&J’s total revenues. In the first half of 2026, oncology revenues increased 16.9% to $14.4 billion on an operational basis, fueled by continued momentum for Darzalex and Erleada, although weaker demand for Imbruvica partially offset these gains. J&J’s new cancer drugs, Carvykti, Tecvayli, Talvey and Rybrevant/Lazcluze are contributing significantly to top-line growth driven by market share gains.
For AstraZeneca, oncology sales now comprise around 46% of total revenues. Sales in its oncology segment rose 15% at constant exchange rate to $14.1 billion in the first half of 2026. AstraZeneca’s strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Merck’s key oncology medicines are the PD-L1 inhibitor Keytruda and the PARP inhibitor Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for more than 55% of the company’s pharmaceutical sales. Keytruda recorded sales of $15.8 billion in the first half of 2026, up 4% year over year.
PFE’s Price Performance, Valuation and Estimates
Pfizer stock has risen 12.3% so far this year compared with an increase of 13.9% for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its five-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 9.48 forward earnings, significantly lower than 18.71 for the industry. However, the stock is trading above its five-year mean of 9.25.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings per share has risen from $2.96 to $2.98, while that for 2027 has risen from $2.85 to $2.94 over the past 30 days.
Image Source: Zacks Investment Research
Pfizer has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.