Pfizer's Cancer Drugs Deliver Growth Amid Competitive Pressure

Core Insights - Pfizer is a leading player in the oncology sector with a strong portfolio of approved cancer medicines and a promising pipeline focusing on various modalities [1] - The acquisition of Seagen in 2023 has enhanced Pfizer's oncology position by adding four antibody-drug conjugates (ADCs) that have significantly contributed to revenues [2] Revenue Performance - Oncology sales account for approximately 28% of Pfizer's total revenues, with a year-to-date growth of 7% driven by key drugs [3][10] - Specific revenue figures include Xtandi at $578 million (up 3%), Lorbrena at $268 million (up 28%), and Braftovi/Mektovi at $202 million (up 17%) [4] - The newly launched drug Elrexfio generated $85 million in sales, while Ibrance saw a decline of 5% to $1.06 billion [4] Pipeline and Future Prospects - Pfizer is advancing its oncology pipeline with several candidates in late-stage development, including atirmociclib and sigvotatug vedotin, and expects to have eight or more blockbuster oncology medicines by 2030 [6][7] - The company has also entered the oncology biosimilars market, generating $315 million in revenues, reflecting a 10% year-over-year increase [5] Competitive Landscape - Major competitors in the oncology space include AstraZeneca, Merck, and Bristol-Myers, with AstraZeneca's oncology sales comprising around 43% of its total revenues and growing by 16% [8] - Merck's Keytruda alone accounts for over 50% of its pharmaceutical sales, with reported sales of $23.3 billion, up 8% [9] - Bristol-Myers' Opdivo accounts for about 20% of its total revenues, with sales rising 8% to $7.54 billion [11] Valuation and Market Position - Pfizer's stock has declined by 4.7% this year, contrasting with a 17.8% increase in the industry [12] - The company's shares are trading at a price/earnings ratio of 8.02, lower than the industry average of 17.26 and its own 5-year mean of 10.44, indicating attractive valuation [13] - The Zacks Consensus Estimate for 2025 earnings has increased from $3.06 to $3.14 per share over the past month [15]