Tomahawk, WI 02/06/2014 (BasicsMedia) – Pfizer Inc. (NYSE:PFE) announced on February, 4 that its breast cancer drug Palbociclib has successfully passed the phase 2 trial of the drug. The test has proved thatPalbociclibcan significantly delay progression of symptoms in a mid-stage trial, meeting the study’s primary goal. Pfizer’s investors are set to gain if this path breaking drug is launched anytime this year and it will boost Pfizer’s revenues and earnings in the coming few years.

Pfizer’s tests

Pfizer Inc. (NYSE:PFE), which is the world’s second largest drug maker, has declared that its drug Palbociclib if taken alongwith with another medicine Letrozole become more effective in increasing the survival time for patients in comparison to Letrozole being taken alone. Palbociclib, as defined in Pfizer’s own terms, is an investigational oral targeted agent that selectively inhibits cyclin-dependent kinases (CDKs) 4 and 6 to regain cell cycle control and block tumor cell proliferation.

Pfizer Inc. (NYSE:PFE) had tested its drug Palbociclib on patients at an advanced stage of breast cancer and some with newly diagnosed breast cancer that had spread to other parts of the body and found the drug to be useful in controlling the spread of cancer cells thereby providing patients a chance to longer survival. The market has reacted positively to Pfizer’s reports on successful testing of its drug Palbociclib and therefore Pfizer shares were up nearly 4 percent within a day of declaration of the report. Dr. Mace Rothenberg, senior vice president of Clinical Development and Medical Affairs and chief medical officer for Pfizer Oncology, said that “We are delighted with the final data, which suggest the potential for Palbociclib to transform the standard of care for post-menopausal women with ER+ and HER2- advanced breast cancer. This is encouraging information for these women, who represent approximately 60 percent of the advanced breast cancer population.” Furthermore, he remarked that “We will discuss these results with the FDA and other regulatory authorities to determine next steps, with the goal of bringing a much-needed new medicine to patients.” If analysts are to be believed than Pfizer has its heart and its finance in the right place as the launch of Pfizer Inc. (NYSE:PFE)’s drug Palbociclib shall not only be help in cancer cure and anti-cancer treatment but it shall also generate unprecedented revenue figures for Pfizer from the moment it is launched.

Market reaction

Jefferies has upgraded the shares of Pfizer Inc. (NYSE:PFE) from “hold” to “buy” with a target price of $38 on the stock. Jefferies up gradation lead to increase in Pfizer’s share prices by 80 cents to $31.40 thereby registering a gain of 2.6%. The logic and reasoning given behind Pfizer’s up gradation is that Jefferies believe that “Oncology and restructuring are key themes for the Pharma sector and Pfizer’s drug Palbociclib combines both and this drug may be launched before the yearend thereby increasing Pfizer’s chances of enhancing both its revenue and earnings beyond market expectations”.  Pfizer’s fourth quarter financial reports beat markets expectations though its revenue fell down due to loss of patents of some of its drugs, tough competition from rivals in overseas market and due to separation of its animal health division.

Future plans

Pfizer Inc. (NYSE:PFE) has been selected by the U.S. Government for undertaking chronic diseases project in the U.S. for discovering new ways for treatment of diseases like Alzheimer’s, diabetes, lupus and arthritis, alongwith nine other leading drug makers. This project is estimated to cost around $230 million wherein all the partners to the consortium are expected to contribute equally towards the cost of the project. Pfizer Inc. (NYSE:PFE) has been well known for its research and innovation and introduction of drugs like Palbociclib will help it in strengthening its market position and creating value for its brand as well.

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