Inside Pfizer's Oncology Performance Ahead of Q4 Results

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 enhanced Pfizer's oncology position by adding four antibody-drug conjugates (ADCs), contributing significantly to revenues in the first nine months of 2025 [2] - Oncology sales account for approximately 28% of Pfizer's total revenues, with a 7% growth in this segment during the first nine months of 2025 [2][11] Oncology Sales Performance - Key drugs such as Xtandi, Lorbrena, and the Braftovi-Mektovi combination are expected to drive Pfizer's oncology sales in Q4, compensating for the decline in Ibrance sales [3][11] - Ibrance sales are anticipated to have decreased due to competitive pressures, generic entries in certain markets, and the redesign of Medicare Part D in the U.S., which also negatively impacted other oncology drugs like Xtandi and Lorbrena [4][11] - Sales of Adcetris may have been affected by competitive pressures, while Padcev is likely benefiting from strong demand trends in first-line metastatic urothelial cancer [5] Pipeline and Future Prospects - Pfizer is expected to provide updates on late-stage oncology candidates such as atirmociclib, vepdegestrant, and sigvotatug vedotin during the Q4 conference call [6] - Sasanlimab, aimed at treating high-risk non-muscle invasive bladder cancer, is currently under review in the U.S. and EU [6] Competitive Landscape - Pfizer competes with major players in the oncology market, including AstraZeneca, Merck, Johnson & Johnson, and Bristol-Myers [7] - AstraZeneca's oncology sales represent about 43% of its total revenues, with a 16% increase in the first nine months of 2025 [8] - Merck's Keytruda, a significant contributor to its sales, recorded $23.3 billion in revenue during the first nine months of 2025, marking an 8% year-over-year increase [9] - Bristol-Myers' Opdivo accounted for around 20% of its total revenues, with sales rising 8% to $7.54 billion in the same period [10] - Johnson & Johnson's oncology sales grew 20.6% to $18.52 billion, driven by both older and newer cancer treatments [12] Financial Performance and Valuation - Pfizer's stock has decreased by 4.4% over the past year, contrasting with a 21.8% increase in the industry [13] - The company's shares are trading at a forward price/earnings ratio of 8.40, lower than the industry average of 17.56 and its own 5-year mean of 10.32, indicating an attractive valuation [15] - The Zacks Consensus Estimate for Pfizer's 2026 earnings has declined from $3.14 to $3.02 per share over the past 60 days [18]