Pfizer (PFE) reports tomorrow before the bell
UPDATE: Pfizer earnings: Looking toward an ambitious 2022 agenda
3:02 pm ET October 29, 2018 (MarketWatch)
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By Emma Court
Pfizer has big pipeline goals, but may still need to do some deals, according to Wall Street analysts
Pfizer Inc. is keeping busy.
The behemoth New York, NY-based drugmaker (PFE) expects to have between 25 and 30 new drug approvals through 2022, including several potential blockbusters that could get approved by 2020.
Following through with that agenda will be key for Pfizer, since it is also scheduled to lose patent exclusivity on a number of valuable products in the next few years.
When the company reports third-quarter earnings, scheduled for Tuesday before the open, expect an update on that ambitious agenda, especially as that 2020 deadline draws closer.
One of those promising products that could bring in $1 billion in sales is tafamidis, intended for the rare, fatal disease transthyretin cardiomyopathy. The drug had positive results in a late-stage trial earlier this year (http://www.marketwatch.com/story/how-a-failed-pfizer-rare-heart-disease-drug-came-back-to-flatten-its-rivals-2018-04-02), shocking Wall Street and lifting Pfizer shares.
There is also the non-opioid pain medication tanezumab (http://www.marketwatch.com/story/new-pain-drug-from-pfizer-and-eli-lilly-shows-promise-as-opioid-alternative-2018-10-23), which Pfizer is co-developing with Eli Lilly & Co.(LLY)and could be a major market opportunity. Tanezumab is a "high-risk/high-reward clinical asset," said SunTrust Robinson Humphrey analyst John Boris, as there are concerns about the drug's safety.
The company has also had three U.S. approvals for cancer drugs in the second half of the year, with two additional ones expected, Boris, who rates the company "hold" with a $45 price target, said.
"We believe that Pfizer will be able to bring a steady stream of new products to market through internal drug development, supplemented by acquisitions," said Edward Jones analyst Ashtyn Evans.
Here's what to expect:
Earnings: Analysts expect Pfizer to report earnings of 75 cents per share, up from 67 cents per share in the year-earlier period, according to FactSet.
Pfizer has beat the FactSet earnings consensus in all but two quarters over the last five years. Those two misses occurred in the third and fourth quarters of 2016.
The software platform Estimize, which crowdsources estimates from buy-side and sell-side analysts, hedge funds, academics and others, has the company earning more, or 78 cents per share.
Revenue: Analysts expect Pfizer to report revenue of $13.53 billion, up from $13.17 billion in the year-earlier period, according to FactSet.
Pfizer has missed the FactSet revenue consensus seven times over the last five years, five of which occurred in the last two years.
The Estimize revenue consensus is a little less at $13.44 billion.
Stock reaction: Pfizer shares rose 2.4% in midday trade Monday. Shares have gained 13.6% over the last three months, compared with a 4.5% drop in the S&P 500 and a 2.1% decline in the Dow Jones Industrial Average .
The SPDR S&P Pharmaceuticals ETF (XPH) has dropped 4.5% over the same time period and the SPDR S&P Biotech ETF (XBI) has slumped 14.6%.
"PFE's stock has performed well in 2018" due to products like tafamidis and tanezumab, and a shareholder-friendly capital allocation strategy, said SunTrust's Boris. And "PFE has important catalysts in 2H18 as its late-stage pipeline plays out."
Pfizer's average analyst rating is "overweight" with a $43.53 price target, according to FactSet. Company shares were trading at $43.63 as of Monday midday.
What to watch for: Even given Pfizer's significant goals for its drug pipeline, analysts have been forecasting that deals may be in its future.
"We continue to believe PFE needs to execute on more deal(s) (like Medivation & Anacor)" due to losing patent exclusivity and to outperform its peers, Boris said.
Pfizer is also poised for turnover in its top position, with Chief Executive Ian Read poised to step down at the end of the year in favor of his deputy, Albert Bourla. The change, which has been forecast internally for some time, shouldn't produce any major waves.
-Emma Court; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 29, 2018 15:02 ET (19:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
UPDATE: Pfizer earnings: Looking toward an ambitious 2022 agenda
3:02 pm ET October 29, 2018 (MarketWatch)
Share
By Emma Court
Pfizer has big pipeline goals, but may still need to do some deals, according to Wall Street analysts
Pfizer Inc. is keeping busy.
The behemoth New York, NY-based drugmaker (PFE) expects to have between 25 and 30 new drug approvals through 2022, including several potential blockbusters that could get approved by 2020.
Following through with that agenda will be key for Pfizer, since it is also scheduled to lose patent exclusivity on a number of valuable products in the next few years.
When the company reports third-quarter earnings, scheduled for Tuesday before the open, expect an update on that ambitious agenda, especially as that 2020 deadline draws closer.
One of those promising products that could bring in $1 billion in sales is tafamidis, intended for the rare, fatal disease transthyretin cardiomyopathy. The drug had positive results in a late-stage trial earlier this year (http://www.marketwatch.com/story/how-a-failed-pfizer-rare-heart-disease-drug-came-back-to-flatten-its-rivals-2018-04-02), shocking Wall Street and lifting Pfizer shares.
There is also the non-opioid pain medication tanezumab (http://www.marketwatch.com/story/new-pain-drug-from-pfizer-and-eli-lilly-shows-promise-as-opioid-alternative-2018-10-23), which Pfizer is co-developing with Eli Lilly & Co.(LLY)and could be a major market opportunity. Tanezumab is a "high-risk/high-reward clinical asset," said SunTrust Robinson Humphrey analyst John Boris, as there are concerns about the drug's safety.
The company has also had three U.S. approvals for cancer drugs in the second half of the year, with two additional ones expected, Boris, who rates the company "hold" with a $45 price target, said.
"We believe that Pfizer will be able to bring a steady stream of new products to market through internal drug development, supplemented by acquisitions," said Edward Jones analyst Ashtyn Evans.
Here's what to expect:
Earnings: Analysts expect Pfizer to report earnings of 75 cents per share, up from 67 cents per share in the year-earlier period, according to FactSet.
Pfizer has beat the FactSet earnings consensus in all but two quarters over the last five years. Those two misses occurred in the third and fourth quarters of 2016.
The software platform Estimize, which crowdsources estimates from buy-side and sell-side analysts, hedge funds, academics and others, has the company earning more, or 78 cents per share.
Revenue: Analysts expect Pfizer to report revenue of $13.53 billion, up from $13.17 billion in the year-earlier period, according to FactSet.
Pfizer has missed the FactSet revenue consensus seven times over the last five years, five of which occurred in the last two years.
The Estimize revenue consensus is a little less at $13.44 billion.
Stock reaction: Pfizer shares rose 2.4% in midday trade Monday. Shares have gained 13.6% over the last three months, compared with a 4.5% drop in the S&P 500 and a 2.1% decline in the Dow Jones Industrial Average .
The SPDR S&P Pharmaceuticals ETF (XPH) has dropped 4.5% over the same time period and the SPDR S&P Biotech ETF (XBI) has slumped 14.6%.
"PFE's stock has performed well in 2018" due to products like tafamidis and tanezumab, and a shareholder-friendly capital allocation strategy, said SunTrust's Boris. And "PFE has important catalysts in 2H18 as its late-stage pipeline plays out."
Pfizer's average analyst rating is "overweight" with a $43.53 price target, according to FactSet. Company shares were trading at $43.63 as of Monday midday.
What to watch for: Even given Pfizer's significant goals for its drug pipeline, analysts have been forecasting that deals may be in its future.
"We continue to believe PFE needs to execute on more deal(s) (like Medivation & Anacor)" due to losing patent exclusivity and to outperform its peers, Boris said.
Pfizer is also poised for turnover in its top position, with Chief Executive Ian Read poised to step down at the end of the year in favor of his deputy, Albert Bourla. The change, which has been forecast internally for some time, shouldn't produce any major waves.
-Emma Court; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 29, 2018 15:02 ET (19:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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