Milestones achieved in May
On May 6, Pfizer (PFE) issued a press release announcing the FDA’s approval of two oral formulations of tafamidis, Vyndaqel and Vyndamax, to treat ATTR-CM (cardiomyopathy of wild-type or hereditary transthyretin-mediated amyloidosis) and reduce the rate of cardiovascular hospitalizations as well as cardiovascular mortality. Vyndaqel has already been approved and launched in Japan in ATTR cardiomyopathy indications.
According to its first-quarter earnings conference call, Pfizer expects Tafamidis to prove to be a transformative therapy. ATTR-CM is a rare, fatal disease that affects almost 100,000 patients in the United States, but there are currently no approved therapies in this indication. Because invasive heart biopsies are used to diagnose ATTR-CM, the disease also remains highly underdiagnosed. Currently, the diagnosis rate is lower than 1%. Pfizer plans to create awareness among cardiologists about the signs and symptoms of ATTR-CM and to drive the use of noninvasive methods, such as integrity and scintigraphy, for diagnosing the condition. With these efforts, Pfizer expects to create a solid growth market for tafamidis.
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On May 2, GlaxoSmithKline (GSK) and Innoviva issued a press release announcing positive results from their Phase 3 CAPTAIN study evaluating Trelegy Ellipta in asthma indications.
Analysts’ recommendations and target prices
Wall Street analysts expect an upside potential of 8.24% for Pfizer based on the company’s closing price on May 6. Analysts first reduced the company’s 12-month consensus target price from $44.46 in February to $44.14 in March but then raised it to $44.36 in April and finally to $45.08 in May.
On the other hand, Wall Street analysts expect a potential upside of 9.38% for GlaxoSmithKline based on the company’s closing price on May 6. Analysts raised the company’s 12-month consensus target price from $44.00 in February and March to $44.33 in April and May.
Of the 15 analysts covering Pfizer, 46.7% have given it “buy” ratings, 46.7% have given it “hold” ratings, and 6.67% have given it “sell” ratings.
Of the four analysts covering GlaxoSmithKline, 50.0% have given it “buy” ratings, and the remaining 50% have given it “holds.”