Pharmaceuticals and biotech companies have had a great run this year. Companies that were waning till last year have prospered and regained strength. But unfortunately Pfizer (NYSE: PFE) is not one of those companies. The company’s 7 percent gain this year wasn’t substantial enough to give it the boost it needed so desperately; because of the fact that the company has been in dire straits for the past couple of years.
The main reason for that has been the loss of poor sales of the core drugs. Revenues of cholesterol-controlling drugs have been dwindling, along with Detrol, Spiriva and other drugs. But there’s still hope that 2015 can turn out to be a great year for Pfizer (NYSE: PFE).
Pfizer (NYSE: PFE)’s breast cancer drug called Palbociclib has shown marvelous results in clinical trials and considering how cancer drugs attract investors; this one is bound to attract them too. Plus the fact that the drug has increased the survival span to 26 months from 7 months is another reason why the drug has the potential to become a hit on the market. Even physicians are vouching for the potential of this drug because they witnessed firsthand the significant changes this drug brought when it comes to increasing the chances of survival.
Pfizer (NYSE: PFE) has been eager to acquire AstraZeneca in order to expand its portfolio and increase the amount of drugs and therapies in its pipeline. Pfizer (NYSE: PFE) wasn’t granted the privilege and it won’t get it again because of the tax inversion deals. But that doesn’t mean all companies will close their doors on Pfizer (NYSE: PFE)’s face. Pfizer (NYSE: PFE) should look to acquire smaller companies, making one acquisition at a time rather than chasing high-end deals. These smaller companies like Jazz Pharmaceuticals and BioMarin pharmaceuticals have the potential to grow rapidly and they pose low risk as compared to high end companies.
Pfizer (NYSE: PFE) has a unique rabbit that it can pull out of its magic hat in the form of Xeljanz. Xeljanz could be the drug that will make 2015 a glorious year for Pfizer (NYSE: PFE). The anti-inflammatory drug Xeljanz was manufactured in 2012 to tend to active rheumatoid arthritis. Xeljanz has largely contributed to the sales Pfizer (NYSE: PFE) made in the last quarter of 2013 and the whole 2014 and analysts are positive that it will also make a great impact on the company’s sales in the coming year.
Pfizer (NYSE: PFE) should avail the opportunity provided by the booming health market. The S&P 500 index has been positive because of biopharma companies and the future looks bright for the health care market. It’s high time for Pfizer (NYSE: PFE) to regain sales and attract investors to brighten its future prospects. Minor acquisitions with little pharmaceuticals would also help the situation. Pfizer (NYSE: PFE) has the potential, it only needs a turn-around of stock and sales. The market is ready to embrace it.