Pfizer Gets a Price Target Increase from Bank of America


 
 
12:16 04/05/2019

Pharma giant Pfizer PFE  has just been given a reiterated 'buy' rating from Bank of America as well as a price target boost.

According to analyst Jason Gerberry of Bank of America, Pfizer is positioned to benefit from some key second-half catalysts.

The analyst increased his price target from $45 a share to $48 a share and cited the revision to higher estimates, with double-digit EPS growth in the 2020-2023 timeframe and pipeline optionality.

Gerberry believes that Pfizer may soon transform from being a fringe player in the orphan drugs to a mainstream company. Gerberry gave three upcoming catalysts in the segment with one being that he sees the Vyndaqel launch in cardiomyopathy, citing bullish feedback of KOL physicians on immediate conversion of existing U.S. patients.

Gerberry also sees that long-term orphan drug launch analysis suggests scope for market expansion and in turn upside to BofA's above-consensus forecast. The analysts estimates peak sales of $2 billion for Vyndaqel.

Another catalyst is DMD gene therapy candidate ‘9926 for which a Phase 1 data readout is scheduled for mid-2019. Gerberry believes that if the data is positive, the pharma giant can directly launch a Phase 3 trial by year-end 2019, same as the timeline for the lead competitor Sarepta Therapeutics Inc.

The last catalyst is Phase 3 data for rivipansel in Phase 3 sickle cell anemia.

According to Gerberry, these three catalysts could lead to 3-6 percent valuation upside and possible re-rate on validation of orphan pipeline.

Pfizer announced this week that the U.S. Food and Drug Administration (FDA) has approved a supplemental New Drug Application (sNDA) to expand the indications for IBRANCE® (palbociclib) in combination with an aromatase inhibitor or fulvestrant to include men with hormone receptor-positive (HR+), human epidermal growth factor receptor 2-negative (HER2-) advanced or metastatic breast cancer.

“With this approval, we are now able to offer IBRANCE to the underserved male breast cancer community and provide more patients with HR+, HER2- metastatic breast cancer the opportunity to access an innovative medicine,” said Chris Boshoff, M.D., Ph.D., Chief Development Officer, Oncology, Pfizer Global Product Development.

He added, “We appreciate that our partnership with the FDA has allowed us to take a significant step forward in the use of real-world data to bring medicines to patients who are most in need.”




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