PF-07258669

Pfizer is extending its cost-cutting drive again, this time with plans to unlock an additional $2.5 billion in savings between 2027 and 2029. That brings its total expected net savings from its various restructuring initiatives in recent years to $9.7 billion through 2029.The latest measures include $1 billion in further productivity savings from technology and simplification initiatives, as well as $1.5 billion from the next phase of its manufacturing optimisation programme, which will focus on network structure changes, enhancements to its product portfolio and more operational efficiencies."We have made meaningful progress on our productivity enhancement initiatives and remain on track to deliver most of the anticipated $7.2 billion in total net cost savings by the end of 2026," said Cecile Guegan, interim chief financial officer replacing Dave Denton, in prepared remarks during the company's second-quarter earnings call Tuesday.Eliquis, Padcev top estimatesThe announcement accompanied stronger-than-expected quarterly results. Overall revenues in the three months ended June were up 3% year-over-year to $15 billion, beating forecasts of $14.4 billion. Pfizer nevertheless reported a net loss of $248 million, versus net income of $2.9 billion in the corresponding year-ago quarter, due to $4.3 billion in non-cash asset impairments mostly tied to disappointing results from a Phase III lung cancer trial of sigvotatug vedotin.Regarding individual drug products, sales were led by the anticoagulant Eliquis, which climbed 21% to $2.4 billion, above analyst expectations of roughly $2 billion. Bladder cancer therapy Padcev, an antibody-drug conjugate Pfizer acquired through its $43-billion takeover of Seagen in 2023, also exceeded forecasts, with sales rising 23% to $667 million, topping consensus estimates of about $634 million.Other growth products included the Vyndaqel franchise (+9%, $1.8 billion), Nurtec ODT/Vydura (+18%, $421 million), Lorbrena (+41%, $354 million) and Abrysvo (+46%, $208 million).Lower COVID outlookHowever, COVID-19 products continued to weigh on results amid subdued demand. Sales of Pfizer's Comirnaty vaccine fell 32% to $261 million, while its Paxlovid treatment for COVID-19 infection plunged 95% to just $21 million. Pfizer lowered its full-year outlook for those products to a combined $4 billion, down from about $5 billion previously."Low COVID-19 incidence could continue to limit Paxlovid utilisation," Guegan said. "Our plan also assumes the majority of Comirnaty sales will occur toward year-end, consistent with the vaccination season."Despite the weaker COVID-19 product outlook, Pfizer did bump up the lower end of its 2026 revenue guidance to between $60.5 billion and $62.5 billion, from a previous range of $59.5 billion to $62.5 billion; it reaffirmed its adjusted earnings guidance of $2.80 to $3.00 per share. Management attributed the improved revenue outlook to a better-than-expected increase from its non-COVID portfolio of $1.5 billion.Pipeline cutsMeanwhile, Pfizer cleared some programmes from its pipeline. On the chopping block are MET-224o (PF-08656796), an oral, fully biased, ultra-long-acting GLP-1 receptor agonist in Phase I testing for chronic weight management. The company had acquired the compound through its hard-fought takeout of Metsera for $10 billion last year.It is also dropping development of another obesity candidate, PF-07976016, a GIP receptor antagonist that was in Phase II.Other discontinued programmes include PF-07985631, which was under development for nephropathy, and PF-07258669, an MC4R antagonist that Pfizer was working on to treat conditions like cachexia and anorexia-associated weight loss. Both of the programmes were in Phase I testing.

Plus, news about Incyte, Evommune, Kainova and Sutro: 📊 Nektar outlines one-year eczema data: The company said its drug rezpegaldesleukin, commonly known as rezpeg, maintained and deepened patients’ skin clearances after a 52-week follow-up period in a Phase 2b study. Rezpeg had previously succeeded in the 16-week induction phase last year, a readout that doubled its stock price $NKTR at the time. Responses from Tuesday’s dataset came from patients who had previously reached significant skin clearance, as well as patients who did not but achieved clearance after a longer treatment period. Nektar plans to quickly move into Phase 3 eczema studies, according to a press release, with the intention of filing for FDA approval in 2029. — Max Gelman 🛑 Pfizer ends trial of malnutrition drug: The pharmaceutical company stopped a Phase 1 test of an experimental medicine for adults, aged 60 to 90 years, who have unintended weight loss. A spokesperson said the asset “remains a part of Pfizer’s portfolio while we assess next steps.” The drugmaker is testing an MC4R antagonist called PF-07258669. Multiple other biopharma companies are developing MC4R agonists and other types of medicines against the target for weight loss and genetic forms of obesity. — Kyle LaHucik 🛑 Incyte shelves Opzelura in one indication, moves forward with Jakafi extended release: Incyte said in its earnings report that it’s pausing development on Opzelura for prurigo nodularis after the FDA asked for an additional clinical study to back an approval application. Incyte also said it resubmitted to the FDA the extended-release version of Jakafi, which had been rejected in 2023, and expects a “regulatory decision and potential commercial launch in mid-2026.” — Lei Lei Wu 📈 Evommune’s eczema drug succeeds in Phase 2a study: The biotech’s shares soared after its EVO301 program saw patients achieve a 55% improvement in skin clearance, compared to 22% for those who took placebo, after 12 weeks. The difference was statistically significant with a p-value of <0.01. Evommune plans to move into Phase 2b with an injectable formulation, though timing is unclear. EVO301 targets IL-18, a mechanism that has no FDA-approved drugs. The share price of Evommune, which IPO’ed in November , $EVMN was up about 45% at midmorning Tuesday. — Max Gelman 🇨🇦 Kainova Therapeutics raises $32M CAD in Series B: The Montreal-headquartered biotech will use the cash to advance its pipeline of GPCR-targeting candidates, including lead asset DT-7012 for solid tumors. The drug is currently in a Phase 1/2 trial. The fundraise was led by Investissement Québec with support from CTI Life Sciences and Panacea Venture, among others. — Ayisha Sharma 💰 Sutro Biopharma to raise $110M in share offering: The ADC-focused biotech is selling more than 7 million shares for $13.98 each. Sutro will use the proceeds for general corporate purposes, including R&D. — Ayisha Sharma