Pfizer’s Shift in Research Focus: A Glimpse into the Future
Goldman Sachs recently sat down with Pfizer’s newly appointed Chief Scientific Officer, Chris Boshoff, to discuss the company’s revamped research and development strategy. The meeting reinforced the analyst’s Buy rating, with a price target of $33.
Prioritizing Economic Returns
Boshoff emphasized Pfizer’s strategic shift towards focusing on opportunities that promise the highest economic returns, while maintaining a balanced portfolio of high-risk and low-risk projects. With an annual R&D budget of approximately $11-12 billion, representing around 15% of revenue, the company is poised to allocate resources to key areas such as Oncology.
Commitment to Obesity, Cardiovascular, and Metabolic Diseases
Pfizer reaffirmed its dedication to programs targeting obesity, cardiovascular, and metabolic diseases. Boshoff believes the anti-obesity medicine market is still in its early stages, with potential for segmentation based on factors like co-morbidities, treatment mechanisms, delivery methods, and combination therapies.
A Promising Future for Anti-Obesity Medicines
Boshoff envisions a future where anti-obesity medicines become integral to primary care. Pfizer’s experience with widely used medications like Lipitor and Eliquis aligns with their strategic goals. Among Pfizer’s three clinical-stage anti-obesity programs, Boshoff expressed confidence in one molecule potentially being among the first oral GLP-1/AOMs available in the U.S. market.
Reliable Long-Term Products
Goldman Sachs notes that Pfizer views Comirnaty and Paxlovid as reliable long-term products, with steady demand expected due to ongoing COVID-19 mutations. The company anticipates more stable vaccination rates and improved commercial stability overall.
Q3 Sales Beat Expectations
In the third quarter, Pfizer reported sales of $17.70 billion, up 31% year-over-year, beating consensus estimates. The increase was primarily driven by growth contributions from Paxlovid and several acquired products, key in-line products, and recent commercial launches.
COVID-19 and Influenza Combination Vaccine
Pfizer remains optimistic about its COVID-19 and influenza combination vaccine, testing new formulations to overcome challenges from earlier clinical data. Despite setbacks in its immunology pipeline, the company remains committed to advancing select early-stage pipeline projects.
Current Stock Performance
PFE stock is currently down 0.77% at $25.62. As Pfizer charts its new R&D vision, investors will be closely watching the company’s progress in the coming months.
Leave a Reply