Pfizer, once the envy of the pharmaceutical world, is now facing a new reality. The company’s COVID-19 vaccine and antiviral Paxlovid, which generated over $100 billion in annual sales during the pandemic, have failed to meet lofty expectations. As a result, Pfizer’s stock price has plummeted to about half of its peak value. The company’s CEO, Albert Bourla, is taking steps to address the company’s financial woes, but it’s clear that the transition from pandemic-era success to a new era of growth and profitability won’t be easy.
Bourla has launched a $3.5 billion cost-cutting effort, which includes layoffs, and is investing in new drugs for cancer and obesity. The goal is to diversify Pfizer’s portfolio and reduce its reliance on COVID-19-related products. The company is also exploring new partnerships and collaborations to accelerate the development of its pipeline. However, the road ahead will be challenging, and Pfizer will need to navigate a complex and competitive landscape to achieve its goals.
Despite the challenges, Bourla remains committed to Pfizer’s COVID-19 vaccines and Paxlovid. He believes that COVID-19 will continue to be an important public health issue, and that these products will continue to play a critical role in addressing it. However, he acknowledges that the company’s expectations for these products were overly optimistic, and that sales have fallen short of $20 billion to around $10 billion. This reality check has forced Pfizer to re-evaluate its strategy and focus on more promising areas of growth.
One area of focus is Pfizer’s acquisition of Seagen, a cancer drugmaker. Seagen is a leader in the development of antibody-drug conjugates (ADCs), a new technology that uses targeted antibodies to deliver chemotherapy directly to cancer cells. ADCs represent a significant breakthrough in cancer treatment, and Pfizer believes that Seagen’s technology will be a major driver of growth for the company in the years to come. The acquisition has given Pfizer access to Seagen’s portfolio of ADCs, including four products that are already on the market, as well as 13 programs in clinical trials that have the potential to become new products.
Bourla believes that ADCs will be a game-changer in the treatment of cancer, and that Pfizer is well-positioned to capitalize on this trend. “Cancer is the enemy,” he says, using military terminology to describe the company’s approach. “In the past, we were fighting this disease with methods like those used in the Second World War. So the Allies would bomb the entire place, hoping that they will hit the most important targets. This is how chemotherapy was working. We release chemotherapy into the body and it is attacking the cancer cells but at the same time is also attacking the healthy cells.”
However, ADCs are a more targeted and effective approach, according to Bourla. “The ADCs are more like modern warfare, with GPS-guided missiles. They have a system, which is the antibody, that is programed to identify the cancer cells among the billions of cells in our body and attach to them. It just goes to them and the drug is like the warhead on the tip of the missile.” By using targeted antibodies to deliver chemotherapy directly to cancer cells, ADCs can reduce the risk of side effects and improve patient outcomes.
Pfizer is also investing in its obesity treatment, which is being developed as a pill. While the twice-daily formulation of the pill was abandoned due to side effects, Pfizer is continuing to study a once-daily version. Bourla believes that the pill has the potential to be a major breakthrough in the treatment of obesity, and that it could become a significant contributor to the company’s revenue in the future. “Everybody wants to lose weight,” he says, “but if they have an option, a lot of people would choose the option of a pill. It remains to be seen, but in the data that we have seen in our Phase 2 studies, we believe we’ll have good tolerability and good efficacy.”
The company is also exploring new opportunities in the area of cancer immunotherapy, which uses the body’s own immune system to fight cancer. Pfizer has a number of programs in this area, including a partnership with Merck to develop a combination therapy for lung cancer. The company is also investing in its digital health platform, which uses artificial intelligence and machine learning to improve patient outcomes and reduce healthcare costs.
Overall, Pfizer is facing significant challenges, but it has a strong foundation and a commitment to innovation and diversification. With careful planning and execution, the company can navigate these challenges and emerge stronger in the long term. However, the road ahead will be complex and competitive, and Pfizer will need to stay focused and adaptable to achieve its goals.