Pfizer (PFE -7.2%) investors heading for the exits after disappointing results from an Ibrance (palbociclib) study should reconsider says the Wall Street Journal.
Shares have been under water today since the company announced that
the study, testing the effect of the kinase inhibitor over and above
endocrine therapy in early-stage HR+/HER2- breast cancer patients, is
unlikely to achieve the primary endpoint of extending survival.
The paper says the setback, potentially dimming
hopes of billions in extra revenue, is not catastrophic considering the
company’s size, adding that Ibrance currently generates ~$5B in sales in
the HR+/HER2- breast cancer population and some oncologists are already
prescribing it off-label as adjuvant therapy. Sales jumped 10% in the
past quarter from a year ago and key patents remain in effect until at
least 2023.
The company’s shares are well-supported at 12x 2020 non-GAAP EPS guidance with a healthy 4% dividend yield.
https://seekingalpha.com/news/3579178-pfizer-selloff-enhancing-attractiveness-wsj
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