Pfizer is shifting its focus from Covid to oncology, aiming to recover from a challenging year with its new strategy centered on cancer drugs. Despite the potential, this transition may take some time to yield results.
At a recent investor event, Pfizer emphasized its expanded commitment to oncology, highlighted by a prominent Super Bowl ad promoting its initiative to combat cancer.
This strategic pivot follows a tumultuous period where Pfizer’s stock plummeted by over 40% in 2023, erasing more than $100 billion in market value due to declining Covid product demand and disappointing launches in other areas.
To bolster its oncology portfolio, Pfizer completed a $43 billion acquisition of Seagen, effectively doubling its pipeline to 60 experimental programs.
The company projects that this collaboration could yield at least eight blockbuster drugs by 2030, though specific candidates weren’t disclosed.
Analysts caution that Pfizer’s mid-stage cancer therapies may require several years to demonstrate pivotal trial data and reduce risk.
Additionally, Pfizer faces competitive pressures in its existing oncology lineup, notably from declining revenues of Ibrance for breast cancer and Xtandi for prostate cancer, which are set to lose exclusivity in 2027.
Despite these challenges, some analysts remain optimistic post-investor day, viewing Pfizer’s outlined path for oncology as a potential buffer against impending patent losses and a driver for future growth.
Pfizer’s newly formed oncology division, led by Chris Boshoff, combines Pfizer and Seagen’s expertise and capabilities.
Boshoff emphasized Pfizer’s global manufacturing footprint and extensive commercial reach as pivotal advantages for expanding cancer treatment access worldwide.
Looking ahead to 2030, Pfizer anticipates that around two-thirds of its oncology revenue will derive from new drugs and expanded indications for existing treatments.
The company forecasts that its Seagen acquisition will generate $10 billion in sales by the end of the decade, although detailed growth projections remain sparse.
Pfizer’s strategic shift also includes a move towards biologic drugs, aiming to increase their share in its oncology pipeline from 6% to 65% by 2030.
Biologics, derived from living sources, offer potential advantages in durability and pricing over small-molecule drugs, aligning with Pfizer’s long-term commercial strategy.
The company’s core oncology offerings will encompass small molecules, biologics like bispecific antibodies and antibody-drug conjugates (ADCs).
Notably, Pfizer is advancing a next-generation ADC platform in collaboration with Seagen, underscoring its commitment to innovative cancer therapies.
Pfizer’s focus in oncology extends to four key cancer types: breast, genitourinary, thoracic, and hematology-oncology.
It anticipates significant growth in genitourinary cancers, plans for pivotal trials for promising therapies like disitamab vedotin for bladder cancer, and explores novel treatments such as atirmociclib for breast cancer.
Beyond oncology, Pfizer continues to develop vaccines, treatments for metabolic and inflammatory conditions, and novel therapeutics like GBT601 for sickle cell disease and potential weight loss drugs.
CEO Mikael Dolsten highlighted ongoing efforts in respiratory and bacterial disease prevention, including new vaccine combinations targeting Covid and influenza.
Pfizer also eyes the potential of a once-daily weight loss pill amid growing demand for obesity treatments.
As Pfizer navigates these diverse therapeutic areas, its strategic emphasis on oncology underscores a pivotal shift towards sustained growth and innovation in the evolving healthcare space.
