ZACKSยท2025-10-24 16:30Core Insights - Pfizer (PFE) and Bristol Myers (BMY) hold a dominant position in the oncology market, which is expected to grow due to an increase in cancer patients globally [1][2] - Oncology sales represent approximately 25% of Pfizer's total revenues, while Bristol Myers focuses on developing transformational medicines in this area [2][3] Pfizer Overview - Pfizer has a diverse oncology product portfolio targeting various cancers through small molecules, antibody-drug conjugates (ADCs), and immune-oncology biologics [4] - Key approved drugs include Ibrance, Xtandi, and Padcev, with Ibrance being a significant revenue generator [5] - The acquisition of Seagen in December 2023 enhanced Pfizer's oncology portfolio by adding four ADCs, which is expected to boost sales in 2024 and the first half of 2025 [6] - Pfizer is also advancing oncology biosimilars and has a robust pipeline with expectations of eight or more blockbuster oncology medicines by 2030 [8] Bristol Myers Overview - Bristol Myers is focused on immuno-oncology (IO) and has a strong portfolio including the blockbuster drug Opdivo, which has received new approvals to extend its reach [10][11] - Recent acquisitions, including Mirati and RayzeBio, have strengthened its oncology pipeline, with new drugs like Krazati and Augtyro [12][14] - The company is also collaborating with BioNTech for the development of bispecific antibodies across various solid tumor types [16] Financial Estimates - The Zacks Consensus Estimate for Pfizer's 2025 sales indicates a slight decline of 0.36%, while earnings per share (EPS) are expected to decrease by 1.29% [17] - In contrast, Bristol Myers' 2025 sales are projected to decrease by 1.97%, but EPS is expected to increase significantly by 455.65% due to low figures in 2024 [19] Price Performance and Valuation - Pfizer's shares have declined by 2%, while Bristol Myers has seen a larger drop of 18.7%, against a 7.9% gain in the large-cap pharma industry [21] - In terms of valuation, Pfizer trades at a forward P/E ratio of 7.88, slightly higher than Bristol Myers' 7.19 [22] - Both companies offer attractive dividend yields, with Pfizer at 6.97% and Bristol Myers at 5.66% [23] Investment Outlook - Despite Pfizer's strong portfolio, it faces challenges such as declining COVID-19 product sales and patent expirations, leading to a Zacks Rank of 4 (Sell) [24] - Bristol Myers is seen as a better investment option currently due to its growth prospects and strategic acquisitions, holding a Zacks Rank of 3 (Hold) [25][26]