Pfizer‘s (NYSE:PFE) has launched its recently approved oncology drug Xalkori in Canada. The launch came just after the drug was found successful in completely curing three types of deadly tumors in children, according to American Society of Clinical Oncology. Pfizer’s oncologics segment is evolving and is expected to grab a larger share of the global oncologic drugs market, going forward. The move certainly bodes well for the company, which faces stiff competition from players like Roche (PINK:RHHBY), Amgen (NASDAQ:AMGN), Johnson and Johnson (NYSE:JNJ) and Novartis (NYSE:NVS) in oncologics market.
Our price estimate for Pfizer stands at $25.11, implying a premium of 10% to the current market price.
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In lung cancer, treatment issues are aggravated as the symptoms typically appear after the disease has already reached the advanced stage. For the same reason, it provides huge opportunities for pharmaceutical companies. Xalkori is an oral monotherapy for the treatment of lung cancer. [1]
Many believe that the drug has found support for lung cancer treatment. Recently, a study conducted by American Society of Clinical also found the drug to completely eradicate indications of three deadly tumors relating to the nerves, blood and soft tissue in some children.
These events lend support to our expectation of the company nearly doubling its market share in this segment. Currently, oncologic drugs contribute nearly 10% to our $25.11 price estimate for PFE.
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Notes:- Pfizer’s XALKORI now available in Canada, News Medical, May 31 2012 [↩]
