Share price movements
Pfizer’s earnings results for the first quarter of 2019 are expected to be released on April 30. On April 18, Pfizer (PFE) and Eli Lilly and Company (LLY) issued a press release announcing the top line results from a Phase 3 trial comparing the efficacy and safety of two dosages—2.5 mg and 5 mg—of investigational therapy tanezumab with NSAIDs (nonsteroidal anti-inflammatory drug) in the treatment of moderate to severe osteoarthritis pain of the hip or knee.
While a 5 mg dosage of tanezumab managed to demonstrate efficacy based on two of the three coprimary endpoints of the trial, the drug’s 2.5 mg dosage failed to report a statistically significant improvement compared to NSAIDs across all three coprimary endpoints. The use of Tanezumab was also associated with a higher level of joint safety events, which are reflective of serious side effects, such as rapidly progressive osteoarthritis type 1 or type 2 or osteonecrosis, compared to NSAIDs.
According to Pfizer’s fourth-quarter earnings conference call, the company plans to position tanezumab as a non-opioid treatment option in moderate to severe osteoarthritis and chronic lower back indications in patients unable to get relief from other analgesics or in cancer pain patients. The company expects the addressable market size for tanezumab in the United States to involve 27 million osteoarthritis patients and 33 million chronic back pain patients.
In the aftermath of the top line result readout, Pfizer stock closed at $39.38 on April 18, 1.25% lower than its previous closing price, 14.58% higher than its 52-week low of $34.37, and 15.26% lower than its 52-week high of $46.47. The company’s market cap was $221.41 billion, and its PE, forward PE, price-to-sales, price-to-book, and price-to-cash ratios were 22.91x, 12.87x, 4.13x, 3.60x, and 11.76x, respectively.
Analysts’ recommendations and target price
Wall Street analysts expect a potential upside of 12.27% for Pfizer based on the company’s closing price on April 18. Analysts revised the company’s 12-month consensus target price from $44.14 in February and March to $44.21 in April. The current consensus analyst recommendation on the stock is a “hold.”
Analysts have given mixed opinions on Pfizer, with two recommending it as a “strong buy,” five recommending it as a “buy,” eight recommending it as a “hold,” and one recommending it as a “strong sell.”