A Post-2Q17 Update on Pfizer’s Oncology Drugs: Sutent, Xalkori, and Inlyta

In 2Q17, Pfizer’s (PFE) oncology drugs generated revenues of ~$279 million, which reflected an ~2% decline on a year-over-year (or YoY) basis and 12% growth on a quarter-over-quarter basis. In 1H17, Sutent generated revenues of ~$529 million compared to $563 million in 1H16. 

The increased market competition in the US and Europe led to decreased revenues in 1H17. Pfizer’s Sutent competes with Bristol-Myers Squibb’s Opdivo and Roche’s Avastin.

In 2Q17, Pfizer’s Xalkori generated revenues of ~$155 million, which reflected ~13% growth on a YoY basis and 9% growth on a quarter-over-quarter basis. In 1H17, Xalkori generated revenues of around $296 million compared to $275 million in 1H16. 

The increase in diagnosis of ALK (anaplastic lymphoma kinase) gene mutation in important markets outside the US led to more patients adopting Xalkori therapy. Xalkori is used to treat individuals with non-small cell lung cancer (or NSCLC) that has spread to other body parts and is due to a defect in the ALK gene. 

Xalkori’s peers in the NSCLC drugs market include Novartis’s (NVS) Zykadia, Roche’s (RHHBY) Tarceva and Avastin, and Eli Lilly’s (LLY) Alimta.

In 2Q17, Inlyta generated revenues of ~$88 million, which represents an ~19% decline on a YoY basis and ~4% growth on a quarter-over-quarter basis. In 1H17, Pfizer’s Inlyta reported revenues of ~$172 million compared to $209 million in 1H16. 

The increasing competition in the US and Europe market led to declining revenues in 1H17, a trend that was partially counterbalanced by growth in important emerging markets. For a detailed report on Xalkori and Inlyta, please read How Are Pfizer’s Xalkori and Inlyta Positioned in 2017?

The growth in Pfizer’s Oncology segment could boost the iShares Core High Dividend ETF (HDV). Pfizer comprises ~5.1% of HDV’s total portfolio holdings.