Pfizer Highlights Dozens of Drugs in Its Pipeline. Heres What It Means to Growth. – Barron’s

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The stock of drug giant Pfizer has underperformed the market in the past five years, rising just 17%, compared with the 70% gain of the S&P 500. Last month, the stock was dropped from the Dow Jones Industrial Average.

On Monday, Pfizer (ticker: PFE) began a two-day investor presentation to show how it will become a growth stock.

Chief Executive Albert Bourla and a dozen colleagues described a pipeline of vaccines and treatments that Pfizer expects will add more than $15 billion in annual revenue by 2025. Growing sales of existing products should add an additional $8 billion in annual revenuelifting revenue from an expected $41.6 billion this year to $64.6 billion in 2025.

After the coming spinoff of Pfizers slower-selling products in its Upjohn portfolio, the company expects to show top-line growth of 6% a year, Bourla said in his afternoon remarks, while delivering double-digit growth in earnings per share. On top of higher earnings numbers, Pfizer should then merit a multiple above the 13-times earnings that its stock now gets.

Investors seemed pleased with what they heard. While the S&P was up 1% in Monday trading, Pfizer stock rose 2.6% to close at $37.01.

By 2025, Pfizers hoping for approval of 6 diabetes drugs, 6 vaccines, 12 autoimmune treatments, 3 gene therapies and 14 cancer treatments.

Among the treatments that could reach annual sales above $3 billion each are: a new vaccine for pneumococcal infections; a treatment for dangerous levels of blood triglycerides; and an oral JAK-inhibitor for autoimmune disorders like arthritis.

A gene therapy for muscular dystrophywhich would compete with one under development by Sarepta Therapeutics (SRPT)could hit peak annual sales above $2 billion. A gene therapy for hemophilia could bring in $1 billion in sales, as could three vaccines against infections of the RSV virus, the c.difficile bacterium and a 5-in-1 vaccine for childhood diseases.

Never in the 23 years that I have been here have I seen as exciting a launch story as I see today, said Pfizers head of biopharmaceuticals, Angela Hwang.

Six new vaccines are targeted for launch by 2025, vaccine group head Nanette Cocero said, including a shot for Lyme disease. New data on the companys investigational vaccines will appear at a virtual meeting of infectious-disease doctors in the week of Oct. 21.

The companys guidance for 6% annual sales growth doesnt include anything for the highly anticipated vaccine against Covid-19 that it is testing with partner BioNTech (BNTX). Pfizer will discuss that vaccine in Tuesdays presentations.

Pfizer hopes to have a Covid vaccine this year. Other new drugs for 2020 include tanezumab, for the pain of osteoarthritis, and treatments for colorectal cancer and bladder cancer.

Write to Bill Alpert at william.alpert@barrons.csom

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Pfizer Highlights Dozens of Drugs in Its Pipeline. Heres What It Means to Growth. - Barron's