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Pfizer’s COVID cash pile opens opportunities for deals

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Investors on Tuesday hope to learn Pfizer Inc’s plans for what could be a once-in-a-generation cash infusion from COVID-19 treatments and vaccines in 2022, with some looking for the drugmaker to spend on deals.

Pfizer’s 2021 sales are expected to top $80 billion – its highest ever annual figure, according to Chief Executive Albert Bourla. Analysts expect revenue to top $100 billion in 2022 as production of Pfizer’s oral antiviral treatment Paxlovid picks up.

The 173-year-old U.S. drugmaker expects 2021 sales of $36 billion and another $29 billion in 2022 just for its COVID-19 vaccine developed with Germany’s BioNTech SE.

Pfizer has said it books profit in the high 20s percent of vaccine revenue.

Expectations are also high for Paxlovid, which is being used in the United States and has been authorized in Canada, UK and Europe.

Analysts on average have forecast sales of nearly $23 billion this year. The U.S. purchase contract alone – for just one sixth of Pfizer’s expected 2022 production of 120 million Paxlovid courses – topped $10 billion.

Profits from the drug are expected to be high.

“What are they actually going to do with all this cash?” said Mizuho analyst Vamil Divan, adding that Pfizer may need to bring in new experimental drugs to replace sales from those losing patent protection in the next few years.

“Is future growth coming from the vaccine and Paxlovid, or are they buying things to boost their pipeline? I think we want to see them do more things like that to build their pipeline,” Divan said.

Pfizer’s profit surge comes at an opportune time for deals. The Nasdaq biotechnology index is down more than 21% in the past 12 months.

“There was very little M&A in biotech last year and that’s one of the things that held the sector back. Biotech investors expect and are hoping that it picks up this year, and we think Pfizer is going to be a major driver of M&A,” said healthcare investor Brad Loncar.

In 2021, Pfizer bought Arena Pharmaceuticals Inc for $6.7 billion in cash and cancer drug developer Trillium Therapeutics for $2.3 billion.

Pfizer also could take other steps to reward shareholders.

“They’ve had such a flood of money come in that there might be a component of buybacks or dividend to Pfizer’s capital deployment, but the main event will be M&A,” Loncar said.

Pfizer’s dividend yield of roughly 3% compares favorably to the nearly 2% dividend yield for the Dow Jones industrial average index.

Pfizer’s shares have risen over 50% in the past 12 months, outperforming the 17% gain for the S&P 500 index in the same time period. Prior to the pandemic, Pfizer’s shares traded in a range below $44 for several years.

 

(Reporting by Manas Mishra in Bengaluru and Michael Erman in New Jersey; editing by Caroline Humer and Bill Berkrot)

Health

How many Nova Scotians are on the doctor wait-list? Number hit 160,000 in June

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HALIFAX – The Nova Scotia government says it could be months before it reveals how many people are on the wait-list for a family doctor.

The head of the province’s health authority told reporters Wednesday that the government won’t release updated data until the 160,000 people who were on the wait-list in June are contacted to verify whether they still need primary care.

Karen Oldfield said Nova Scotia Health is working on validating the primary care wait-list data before posting new numbers, and that work may take a matter of months. The most recent public wait-list figures are from June 1, when 160,234 people, or about 16 per cent of the population, were on it.

“It’s going to take time to make 160,000 calls,” Oldfield said. “We are not talking weeks, we are talking months.”

The interim CEO and president of Nova Scotia Health said people on the list are being asked where they live, whether they still need a family doctor, and to give an update on their health.

A spokesperson with the province’s Health Department says the government and its health authority are “working hard” to turn the wait-list registry into a useful tool, adding that the data will be shared once it is validated.

Nova Scotia’s NDP are calling on Premier Tim Houston to immediately release statistics on how many people are looking for a family doctor. On Tuesday, the NDP introduced a bill that would require the health minister to make the number public every month.

“It is unacceptable for the list to be more than three months out of date,” NDP Leader Claudia Chender said Tuesday.

Chender said releasing this data regularly is vital so Nova Scotians can track the government’s progress on its main 2021 campaign promise: fixing health care.

The number of people in need of a family doctor has more than doubled between the 2021 summer election campaign and June 2024. Since September 2021 about 300 doctors have been added to the provincial health system, the Health Department said.

“We’ll know if Tim Houston is keeping his 2021 election promise to fix health care when Nova Scotians are attached to primary care,” Chender said.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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Newfoundland and Labrador monitoring rise in whooping cough cases: medical officer

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ST. JOHN’S, N.L. – Newfoundland and Labrador‘s chief medical officer is monitoring the rise of whooping cough infections across the province as cases of the highly contagious disease continue to grow across Canada.

Dr. Janice Fitzgerald says that so far this year, the province has recorded 230 confirmed cases of the vaccine-preventable respiratory tract infection, also known as pertussis.

Late last month, Quebec reported more than 11,000 cases during the same time period, while Ontario counted 470 cases, well above the five-year average of 98. In Quebec, the majority of patients are between the ages of 10 and 14.

Meanwhile, New Brunswick has declared a whooping cough outbreak across the province. A total of 141 cases were reported by last month, exceeding the five-year average of 34.

The disease can lead to severe complications among vulnerable populations including infants, who are at the highest risk of suffering from complications like pneumonia and seizures. Symptoms may start with a runny nose, mild fever and cough, then progress to severe coughing accompanied by a distinctive “whooping” sound during inhalation.

“The public, especially pregnant people and those in close contact with infants, are encouraged to be aware of symptoms related to pertussis and to ensure vaccinations are up to date,” Newfoundland and Labrador’s Health Department said in a statement.

Whooping cough can be treated with antibiotics, but vaccination is the most effective way to control the spread of the disease. As a result, the province has expanded immunization efforts this school year. While booster doses are already offered in Grade 9, the vaccine is now being offered to Grade 8 students as well.

Public health officials say whooping cough is a cyclical disease that increases every two to five or six years.

Meanwhile, New Brunswick’s acting chief medical officer of health expects the current case count to get worse before tapering off.

A rise in whooping cough cases has also been reported in the United States and elsewhere. The Pan American Health Organization issued an alert in July encouraging countries to ramp up their surveillance and vaccination coverage.

This report by The Canadian Press was first published Sept. 10, 2024.

The Canadian Press. All rights reserved.

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Health

Bizarre Sunlight Loophole Melts Belly Fat Fast!

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