Pfizer (PFE) Expands Patient Access With Eliquis (Apixaban) Direct Purchase Program

Pfizer (PFE), in collaboration with Bristol Myers Squibb, has introduced a direct-to-patient option for Eliquis®, potentially enhancing patient access and affordability. Over the past quarter, Pfizer's share price saw an 11% increase. This move aligns with a broader market upswing, as major indexes achieved record highs. Noteworthy developments during this time included breakthroughs in clinical studies and strategic alliances, which potentially bolstered investor confidence. However, the company's performance remained in step with general market trends, suggesting these events merely reinforced broader investor optimism amid a rising market.

We've spotted 3 possible red flags for Pfizer you should be aware of.

Find companies with promising cash flow potential yet trading below their fair value.

The recent collaboration between Pfizer and Bristol Myers Squibb to provide a direct-to-patient option for Eliquis® could influence Pfizer's revenue trajectory by potentially increasing patient access and affordability. Despite this, Pfizer's shares have seen a total return of 12.57% over the last year, underperforming compared to the US market's 12.4% gain, and considerably less so against the US Pharmaceuticals industry, which declined by 11% during the same period.

This innovative approach might partially mitigate some revenue pressures by enhancing sales volumes of Eliquis®, yet the company's broader forecast remains uncertain given the expected 2.5% annual revenue decline over the next three years. The expanded reach of Eliquis® could offer some leeway in addressing revenue declines from key drugs like Vyndaqel and Paxlovid. However, earnings are still forecast to grow at 6.11% annually, slower than the expected US market growth of 14.8%.

Pfizer's current share price of US$24.61 presents a discount of approximately 18.8% to the consensus analyst price target of US$29.23. The introduction of direct-to-patient options may contribute positively to sentiment, yet analyst consensus suggests that Pfizer is currently fairly priced, with limited upside potential. Investors might consider the slow expected earnings growth relative to market and industry trends when evaluating their positions in the portfolio.

Explore Pfizer's analyst forecasts in our growth report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com