Latest news with #3SBio
Yahoo
7 days ago
- Business
- Yahoo
Is Pfizer Stock a Buy After This $1.25 Billion Investment?
Pfizer is licensing a promising investigational cancer medicine from a smaller company. This move improves the drugmaker's already attractive oncology pipeline. Pfizer should eventually bounce back, thanks to its deep pipeline and improving efficiency. 10 stocks we like better than Pfizer › Pfizer (NYSE: PFE) made a fortune thanks to its work in the COVID-19 market. In 2022, it became the first company in the biopharmaceutical industry to generate $100 billion in annual sales. However, the pandemic receded, and revenue in this area dropped off a cliff. The drugmaker has been looking for a way back ever since -- a product, or several, that can rack up billions in annual sales and help its top line move consistently in the right direction. It recently found a candidate for that position. Let's look deeper, and discuss whether the recent development makes Pfizer stock a buy. On May. 19, Pfizer announced it was entering into a licensing agreement with 3SBio, a China-based biotech company. Per the terms of the deal, Pfizer will acquire the rights to develop and market SSGJ-707 -- an investigational cancer medicine -- worldwide, except in China. The pharmaceutical giant dished out an up-front payment of $1.25 billion, with potential clinical and regulatory milestones of up to $4.8 billion for 3SBio, not including royalties. Why could this deal be significant? SSGJ-707 is a bispecific antibody, a class of drugs that's gaining prominence in the oncology market. Like monoclonal antibodies, bispecifics are lab-made proteins designed to mimic the action of natural antibodies by binding to and neutralizing antigens. However, whereas monoclonal antibodies target one specific antigen, bispecifics target two; in some cases, this can increase efficacy. Merck's cancer medicine Keytruda, the world's best-selling drug, is a monoclonal antibody. Recent developments suggest that ivonescimab, a bispecific being developed in the U.S. by Summit Therapeutics, could challenge Keytruda, especially in the vast non-small cell lung cancer (NSCLC) market. Pfizer could also throw its hat into this ring with SSGJ-707. The medicine passed phase 2 studies and should start phase 3 clinical trials this year, albeit in China. SSGJ-707 is being developed to treat NSCLC, colorectal cancer, and gynecological tumors. Pfizer already has a deep oncology pipeline, particularly thanks to its $43 billion acquisition of the smaller cancer specialist Seagen. However, SSGJ-707 is a nice addition: It's a promising candidate in an equally promising niche of the oncology market. The drugmaker's prospects rely in large part on its pipeline, since its current crop of medicines isn't driving consistent top-line growth -- in the first quarter, revenue dropped by 8% year over year to $13.7 billion. That's before we consider the fact that Pfizer will face patent cliffs by the end of the decade, including one for its anticoagulant Eliquis. Still, it's betting that its vast portfolio of investigational candidates will help it smooth out these losses and return to sales growth. SSGJ-707 fits well within this strategy, and in my view, Pfizer is well on its way to accomplishing that goal. In the past few years, it earned approval for several products. While none has been able to get close to blockbuster status yet, this deep pipeline should eventually lead to more significant clinical and regulatory wins. Meanwhile, the company is also working on cutting its expenses. It's on track to deliver $4.5 billion in cost savings by year-end, with even more coming through 2027. Pfizer hopes to boost its bottom line and margins thanks to these optimization efforts. These might not immediately impact its stock performance, but together with its pipeline goals, they could eventually lead to much stronger returns. Pfizer's decision to license SSGJ-707 doesn't make its stock a buy in and of itself. However, the drug candidate is another valuable asset that will be part of the company's plan to improve its business and financial results. Recently, Pfizer's shares have been trading at a dirt cheap forward price-to-earnings (P/E) ratio of around 8, half that of the average healthcare stock. I think the stock looks attractive at current levels. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck, Pfizer, and Summit Therapeutics. The Motley Fool has a disclosure policy. Is Pfizer Stock a Buy After This $1.25 Billion Investment? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
7 days ago
- Business
- Globe and Mail
Is Pfizer Stock a Buy After This $1.25 Billion Investment?
Pfizer (NYSE: PFE) made a fortune thanks to its work in the COVID-19 market. In 2022, it became the first company in the biopharmaceutical industry to generate $100 billion in annual sales. However, the pandemic receded, and revenue in this area dropped off a cliff. The drugmaker has been looking for a way back ever since -- a product, or several, that can rack up billions in annual sales and help its top line move consistently in the right direction. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » It recently found a candidate for that position. Let's look deeper, and discuss whether the recent development makes Pfizer stock a buy. Entering a promising market On May. 19, Pfizer announced it was entering into a licensing agreement with 3SBio, a China-based biotech company. Per the terms of the deal, Pfizer will acquire the rights to develop and market SSGJ-707 -- an investigational cancer medicine -- worldwide, except in China. The pharmaceutical giant dished out an up-front payment of $1.25 billion, with potential clinical and regulatory milestones of up to $4.8 billion for 3SBio, not including royalties. Why could this deal be significant? SSGJ-707 is a bispecific antibody, a class of drugs that's gaining prominence in the oncology market. Like monoclonal antibodies, bispecifics are lab-made proteins designed to mimic the action of natural antibodies by binding to and neutralizing antigens. However, whereas monoclonal antibodies target one specific antigen, bispecifics target two; in some cases, this can increase efficacy. Merck 's cancer medicine Keytruda, the world's best-selling drug, is a monoclonal antibody. Recent developments suggest that ivonescimab, a bispecific being developed in the U.S. by Summit Therapeutics, could challenge Keytruda, especially in the vast non-small cell lung cancer (NSCLC) market. Pfizer could also throw its hat into this ring with SSGJ-707. The medicine passed phase 2 studies and should start phase 3 clinical trials this year, albeit in China. SSGJ-707 is being developed to treat NSCLC, colorectal cancer, and gynecological tumors. Another piece of the puzzle Pfizer already has a deep oncology pipeline, particularly thanks to its $43 billion acquisition of the smaller cancer specialist Seagen. However, SSGJ-707 is a nice addition: It's a promising candidate in an equally promising niche of the oncology market. The drugmaker's prospects rely in large part on its pipeline, since its current crop of medicines isn't driving consistent top-line growth -- in the first quarter, revenue dropped by 8% year over year to $13.7 billion. That's before we consider the fact that Pfizer will face patent cliffs by the end of the decade, including one for its anticoagulant Eliquis. Still, it's betting that its vast portfolio of investigational candidates will help it smooth out these losses and return to sales growth. SSGJ-707 fits well within this strategy, and in my view, Pfizer is well on its way to accomplishing that goal. In the past few years, it earned approval for several products. While none has been able to get close to blockbuster status yet, this deep pipeline should eventually lead to more significant clinical and regulatory wins. Meanwhile, the company is also working on cutting its expenses. It's on track to deliver $4.5 billion in cost savings by year-end, with even more coming through 2027. Pfizer hopes to boost its bottom line and margins thanks to these optimization efforts. These might not immediately impact its stock performance, but together with its pipeline goals, they could eventually lead to much stronger returns. Pfizer's decision to license SSGJ-707 doesn't make its stock a buy in and of itself. However, the drug candidate is another valuable asset that will be part of the company's plan to improve its business and financial results. Recently, Pfizer's shares have been trading at a dirt cheap forward price-to-earnings (P/E) ratio of around 8, half that of the average healthcare stock. I think the stock looks attractive at current levels. Should you invest $1,000 in Pfizer right now? Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
23-05-2025
- Business
- Yahoo
Pharma Stock Roundup: NVO CEO Resigns, SNY to Buy VIGL & More
This week, Novo Nordisk NVO announced the surprise resignation of its chief executive officer (CEO), Lars Fruergaard Jørgensen. Sanofi SNY announced the proposed acquisition of Vigil Neuroscience, a clinical-stage biotech focused on developing treatments for neurodegenerative diseases. Pfizer PFE announced a licensing deal with Chinese biotech 3SBio. The FDA granted approval to Roche's RHHBY eye drug, Susvimo, for its third indication in the United States. Merck MRK and its Japanese partner Daiichi Sankyo began a pivotal study on ifinatamab deruxtecan in esophageal cancer. Here's a recap of the week's most important stories. Novo Nordisk announced that its CEO, Lars Fruergaard Jørgensen, will step down from his position. The decision can be attributed to increasing competitive pressure and recent market challenges that have led to a decline in the company's stock price since mid-2024. Also, the Novo Nordisk Foundation board asked for a CEO succession and an increased presence on the NVO board. Novo Nordisk Foundation controls the majority of votes at the Novo Nordisk annual general meeting. Accordingly, Lars Rebien Sørensen, chair of the Novo Nordisk Foundation, will join NVO's board as an observer for some time. Jørgensen's decision comes after a mutual agreement with the board, although he will remain in his role temporarily to ensure a smooth transition. Jørgensen has been CEO since 2017 and played a pivotal role in the company's expansion, particularly in the obesity treatment market, which has been a significant growth driver for Novo Nordisk in recent years. Novo Nordisk said a search for Lars Fruergaard Jørgensen's successor has begun. Sanofi announced an agreement to acquire Vigil Neuroscience, which is making innovative TREM2-based therapeutics for neurodegenerative diseases, for a total equity value of around $470 million ($8 per share in cash). The acquisition will add Vigil's investigational oral small-molecule TREM2 agonist, VG-3927, which will be developed in a phase II study for treating Alzheimer's disease. However, Sanofi is not acquiring VGL101, Vigil's second molecule program, which is being developed for another neurodegenerative disease. Pfizer announced an exclusive deal to acquire global (ex-China) rights to SSGJ-707, a bispecific PD-1/VEGF antibody developed by Chinese biotech 3SBio, for an upfront payment of $1.25 billion. The deal includes up to $4.8 billion in milestone payments, tiered double-digit royalties, and a $100 million equity investment in 3SBio. SSGJ-707 is being developed for cancers such as non-small cell lung cancer and metastatic colorectal cancer, with a phase III trial expected this year. Unlike existing PD-1 therapies, SSGJ-707 targets both PD-1 and VEGF, potentially offering a stronger anti-tumor response. The deal is set to be closed in the third quarter. The FDA approved Roche's eye drug, Susvimo, for treating diabetic retinopathy (DR). Susvimo is already approved for treating neovascular or 'wet' age-related macular degeneration and diabetic macular edema. The approval was based on one-year data from the phase III Pavilion study. Susvimo provides continuous delivery of a customized formulation of ranibizumab via the Port Delivery Platform (a refillable eye implant), offering an alternative treatment option to regular VEGF eye injections for patients at risk of vision loss from progression of diabetic retinopathy. Merck and partner Daiichi Sankyo announced the dosing of the first patient in the pivotal IDeate-Esophageal01 phase III study evaluating the efficacy and safety of ifinatamab deruxtecan (I-DXd) in certain patients with pretreated advanced or metastatic esophageal squamous cell carcinoma versus the physician's choice of chemotherapy. The study's primary endpoint is overall survival. Ifinatamab deruxtecan is also being evaluated in a phase III study in relapsed small cell lung cancer (SCLC). Ifinatamab deruxtecan is a part of Merck's collaboration with Daiichi Sankyo to co-develop and co-commercialize the latter's three DXd antibody drug conjugates or ADCs worldwide, except Japan. The other two ADCs are patritumab deruxtecan/MK-1022 and raludotatug deruxtecan/MK-5909. In August last year, Merck expanded the collaboration to co-develop and co-commercialize MK-6070, an investigational T-cell engager targeting delta-like ligand 3 (DLL3), which it obtained from its acquisition of Harpoon Therapeutics. Pfizer has a Zacks Rank #2 (Buy), while Novo Nordisk, Pfizer, Sanofi and Merck carry a Zacks Rank of 3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The NYSE ARCA Pharmaceutical Index has declined 3.8% in the past five trading sessions. Large Cap Pharmaceuticals Industry 5YR % Return Here's how the eight major stocks performed in the previous five trading sessions. Image Source: Zacks Investment Research In the last five trading sessions, Merck rose the most (4.1%) while Lilly declined the most (2.3%). In the past six months, Novartis rose the most (11.2%), while Novo Nordisk declined the most (34.0%). (See the last pharma stock roundup here: BAYRY Q1 Earnings, NVO & GSK's New Deals) Watch this space for regular pipeline and regulatory updates next week. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Roche Holding AG (RHHBY) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
21-05-2025
- Business
- South China Morning Post
Chinese biotech firm secures US$6 billion Pfizer deal for cancer drug
Chinese drug maker 3SBio has licensed its new cancer drug to US pharmaceutical giant Pfizer in the largest deal ever for China's biotech industry, underscoring the strong commercial Sino-US ties despite geopolitical headwinds. Based in Shenyang, capital of northeastern Liaoning province, 3SBio will receive a US$1.25 billion upfront payment for licensing its cancer drug SSGJ-707 exclusively to Pfizer, which will manufacture and commercialise the drug outside mainland China, the companies announced on Tuesday. The size of Pfizer's upfront payment sets a record for Chinese drug licensing deals, Shanghai-based data provider PharmCube wrote in a blog post on Tuesday. 3SBio could receive additional payments of up to US$4.8 billion if certain development, regulatory and commercial milestones are met. The Chinese firm would also be entitled to tiered double-digit royalties on drug sales. As part of the deal, Pfizer is investing US$100 million in equity in 3SBio, according to the companies. 06:10 China's new cancer drug gets US approval at huge price mark-up China's new cancer drug gets US approval at huge price mark-up 3SBio was established in 1993 by Lou Dan, a former director at a local military medical research institute in Shenyang, with an initial focus on interferons, a type of protein that helps the immune system defend against certain infections and diseases.
Yahoo
20-05-2025
- Business
- Yahoo
BMO Capital Maintains Buy Rating on Pfizer (PFE) Stock
On May 20, BMO Capital analyst Evan Seigerman maintained a Buy rating on Pfizer Inc. (NYSE:PFE) and kept the price target the same at $30. The reiteration comes after the company recently announced entering into an exclusive licensing agreement with 3SBio, a leading Chinese biopharmaceutical company. A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution. The agreement entails the development, manufacturing, and commercialization of SSGJ-707, which is a bispecific antibody targeting PD-1 and VEGF. The drug is currently under clinical trials in China for treating non-small cell lung cancer, metastatic colorectal cancer, and gynecological tumors. As per the preliminary data, the candidate has shown promising results and safety data. As per the agreement, Pfizer Inc. (NYSE:PFE) has secured exclusive global rights to manufacture and commercialize SSGJ-707 around the world, excluding China. Seigerman, in his note, regarded this agreement as a significant move to expand the company's oncology portfolio and leverage its collaborations to enhance its strategic edge. However, he also acknowledged the high cost of this agreement. Pfizer Inc. (NYSE:PFE) will pay 3SBio $1.25 billion upfront, with total development milestone payments reaching up to $4.8 billion. Additionally, 3SBio will receive tiered double-digit royalties on sales if the drug is approved. Moreover, Seigerman highlighted that Pfizer Inc. (NYSE:PFE) is currently undervalued in comparison to its United States peers and has gained a strategic advantage through transformative acquisitions. The analyst highlighted the company's operational efficiency, conservative revenue guidance for 2025, and potential clinical developments in areas such as oncology and obesity being the major reasons for optimism. While we acknowledge the potential of PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
