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Why Xeljanz Could Boost Pfizer’s Revenue Growth

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Jul. 25 2017, Updated 6:40 a.m. ET

Xeljanz’s revenue trends

In 2016, Pfizer’s (PFE) Xeljanz reported revenues of ~$927 million, which reflected a ~77% growth YoY (year-over-year). In 1Q17, Xeljanz generated revenues of ~$250 million, which represents a ~27% YoY rise and a 10% QoQ (quarter-over-quarter) fall.

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About Xeljanz (tofacitinib)

Xeljanz is used for the treatment of adult individuals with moderately to severely active rheumatoid arthritis who did not respond adequately to methotrexate.

In July 2017, the FDA (US Food and Drug Administration) accepted the sNDA (supplemental new drug application) for Xeljanz for the treatment of individuals with moderately to severely active UC (ulcerative colitis). The FDA provided an expected PDUFA (Prescription Drug User Fee Act) action date in March 2018.

In May 2017, the FDA accepted the sNDA for a Xeljanz 5-mg, twice-daily dose for adult individuals with psoriatic arthritis. The FDA also accepted a separate sNDA for a Xeljanz 11-mg, extended-release, once-daily dose for treatment of psoriatic arthritis. The FDA granted an expected PDUFA action date in December 2017.

In March 2017, Pfizer received the EC (European Commission) approval of a Xeljanz 5-mg, twice-daily dose in combination with methotrexate for the treatment of moderately to severely active rheumatoid arthritis in adult patients who did not show an adequate response or were intolerant to one or more DMARDs (disease-modifying antirheumatic drugs). The EC also approved Xeljanz monotherapy for patients who are intolerant to methotrexate.

Pfizer’s Xeljanz faces stiff competition from AbbVie’s (ABBV) Humira, Johnson & Johnson’s (JNJ), and Merck’s Remicade. Amgen (AMGN) and Pfizer together market Enbrel, another blockbuster anti-rheumatic and psoriatic drug.

Notably, the iShares Core S&P 500 ETF (IVV) has ~0.93% of its total portfolio holding in Pfizer.

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