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Pfizer's stalled growth increases pressure for large deal

Published 08/01/2017, 11:34 AM
© Reuters.  Pfizer's stalled growth increases pressure for large deal
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  • FiercePharma's John Carroll notes that Pfizer (PFE -0.9%), despite its impressive R&D successes, remains under pressure to do a megadeal to rekindle stalled growth evidenced by Q2 results that showed a 2% drop in revenues and a modest 3% rise in non-GAAP earnings.
  • Management says it has 25 - 30 potential product approvals over the next five years, including 15 that could achieve blockbuster status ($1B in annual sales). Half could be approved by 2020. Front and center is the company's cancer pipeline, led by PARP inhibitor talazoparib, acquired in the Medivation transaction. It will need fresh offerings since Prevnar sales have softened and competition looms for Lyrica. Ibrance is a winner, up 67% in Q2 to $853M, but more are needed.
  • Mr. Carroll says the shortest path to growth is dealmaking. Although rebuffed in its first attempt at a takeover, AstraZeneca (AZN -0.3%) arguably remains a target, considering its recent plunge after disappointing results on lung cancer candidate durvalumab.
  • Previously: AstraZeneca may again become a takeover target if growth fails to materialize (March 20, 2015)
  • Previously: Pfizer set to abandon bid for AstraZeneca (May 26, 2014)
  • Now read: Pfizer: Why It's A Good Fit


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