2 Biotech Companies That Might Be on Pfizer's Radar Right Now
Pfizer (NYSE: PFE) has a unique problem. The company's annual revenue haul was upped in a big way this year, thanks to its BioNTech-partnered COVID-19 vaccine. While explosive revenue growth is always a good thing, Pfizer is now tasked with finding a way to keep its top line headed in the right direction over the long haul. The issue at hand is that the drugmaker's COVID-19 vaccine sales have probably already peaked. Wall Street, in fact, expects Pfizer's top line to drop by a hefty 11% next year as a direct result of declining coronavirus vaccine sales.
What's more, the drugmaker will have to contend with the upcoming patent expiration for its Bristol Myers Squibb-partnered blood thinner Eliquis in the second half of the current decade. That's a big deal. Eliquis generated a noteworthy $1.35 billion in revenue in the third quarter alone. Pfizer has one of the better pipelines in the industry, but it doesn't sport any assets capable of offsetting rapidly falling sales for two mega-blockbuster products within a few short years of one another.
The good news is that Pfizer's cash position should exceed $30 billion by year's end. The company thus has sufficient firepower to execute multiple mergers and acquisitions (M&A) to address this issue. As a matter of fact, the pharma titan has seemingly already told Wall Street that it plans on being active on the M&A front in the near future. During its recent third-quarter conference call, for example, Pfizer's chief business and innovation officer Aamir Malik had this to say about the company's business development strategy:
Source Fool.com
