Pfizer’s (PFE) Ibrance was first approved for advanced breast cancer in February 2015. In February 2016, it was further extended to treat recurrent breast cancer.
In various preclinical studies, Pfizer has explored the best-suited partners for combination with Ibrance in other tumors. There are more than 30 Ibrance studies where 50% of the studies are investigating the drug beyond breast cancer.
In August 2016, data from the study for Ibrance in combination with Cetuximab for head and neck cancer will be available. The drug is being studied for pancreatic cancer,and lung cancer. Other companies with oncology space presence include Novartis (NVS), Merck (MRK), and Roche (RHHBY).
In 2Q16, Sutent earned $285 million while Xalkori earned $137 million in the quarter. Sutent is indicated for advanced and metastatic RCC (renal cell carcinoma), refractory GIST (gastrointestinal stromal tumors), and advanced pancreatic neuroendocrine tumor. Xalkori is indicated for locally advanced or metastatic NSCLC (Non-small-cell lung carcinoma) that is ALK-positive or ROS1-positive.
In 2010, Mylan (MYL) filed an ANDA (abbreviated new drug application) for bringing in a generic version of Sutent. Pfizer won the case with the court’s decision declaring that Pfizer’s patents expiring in 2021 to be valid and infringed.
Investors should note that investing in this space is risky, as the pharmaceuticals industry relies heavily on research and development, as well as the success of its pipeline candidates. With any success or setback to its pipeline drug, its valuation can change significantly.
To reduce direct equity-specific risk, you can consider the iShares Dow Jones US Healthcare ETF (IYH). The fund holds ~7.2% of its assets in Pfizer.
Continue to the next part for details on Pfizer’s Inflammation & Immunology (I&I) portfolio.