The Oncology Bet Is Already Paying Off For Pfizer

With the waning of the Covid-19 pandemic, pharmaceutical companies have turned their focus toward oncology in search of their next growth narrative. Pfizer Inc (PFE) has reported a compelling performance in its third quarter, showcasing a robust 14% revenue growth on an operational basis, significantly attributed to their cancer products acquired from Seagen during their acquisition last December. Meanwhile, Moderna Inc (MRNA) has surprised analysts with a profit and higher-than-expected revenue after launching its updated Covid-19 vaccine earlier this year and focusing on cost-cutting measures.

Despite the continuous specter of Covid-19, Moderna is also channeling energy into the realm of oncology, leveraging the capabilities of mRNA technology to forge new pathways in cancer treatment. However, remarkable advancements are not limited to the treatment of cancer; significant innovations in the early screening and potential prevention of the disease are also being developed. For instance, Mainz Biomed (MYNZ), a less prominent player in the market, recently announced a strategic collaboration aimed at creating and potentially commercializing its next-generation colorectal cancer (CRC) screening product.

Mainz Biomed’s Innovative Approach to Early Detection

Mainz Biomed, recognized as a molecular genetics diagnostic company, specializes in the early detection of cancer. The recent partnership with Thermo Fisher Scientific Inc (TMO), through its subsidiary Life Technologies Corporation, is aimed at harnessing Thermo Fisher’s state-of-the-art life sciences solutions and services. This collaboration will enable Mainz Biomed to cultivate proprietary assays for their mRNA-based CRC screening tests, which are set to advance the standards for early cancer detection.

With ongoing clinical trials in the U.S. and Europe for its flagship non-invasive test, Mainz Biomed stands poised to redefine benchmarks in cancer screening. Their flagship product, ColoAlert, is noteworthy not only for its early detection capabilities regarding colorectal cancer but also for its ability to identify advanced adenomas—known cancer precursors. This innovation promises to open new doors for cancer prevention, a frontier that many businesses within the industry have yet to explore.

Pfizer’s Promising Oncology Portfolio

In Pfizer’s latest earnings report, the company exceeded analysts’ expectations, prompting a raised guidance for the full year. Cancer drugs contributed substantially to Pfizer’s revenue, bringing in $854 million, with notable centering on treatments like Padcev, a targeted therapy for bladder cancer, which generated $409 million, and Adectris, a treatment for lymphoma that added another $268 million to the overall revenue.

For the third quarter, Pfizer recorded a total general revenue of $17.7 billion. This strong showing is particularly welcome for CEO Albert Bourla, who faces mounting pressure from activist investor Starboard Value to bolster Pfizer’s performance.

Moderna’s Strategic Shift Towards Oncology

On the other hand, Moderna has been in the midst of a considerable shift, strategically focusing on both developing cancer treatments and reducing operational costs. In September, the company outlined its plans to cut its research and development budget by $1.1 billion over the next three years while aiming to gain FDA approval for ten products, which includes various cancer treatments and vaccines.

During their recent earnings call, CEO Stéphane Bancel expressed satisfaction with the cost efficiencies achieved within the quarter, indicating that progress has surpassed expectations. In the third quarter, Moderna brought in revenue of $1.86 billion, exceeding LSEG’s consensus estimate of $1.25 billion. Despite their advancements in oncology, Moderna’s earnings are still primarily driven by its Covid-19 vaccine and a recently approved RSV vaccine, which earned $10 million in sales in the U.S. since gaining approval in May.

Looking Ahead: The Future of Oncology and Cancer Prevention

While Pfizer appears to be firmly establishing its presence in the oncology landscape with its cancer therapies yielding significant revenue, Moderna is betting on its messenger RNA platform to revolutionize cancer treatment. With an impressive pipeline featuring 45 products in development, Moderna anticipates introducing ten new items to the market within three years.

As both companies evolve in the oncology space, there is a remarkable opportunity for innovation in early detection and prevention of cancer, offering hope for millions worldwide. With firms like Mainz Biomed also pushing the boundaries of cancer screening technologies, the oncology landscape is set to transform, possibly reshaping how we think about cancer prevention and treatment in the years to come.

As these trends unfold, the convergence of biotechnology and oncology spearheaded by both industry giants and nimble innovators will continue to unfold, promising a vibrant future filled with possibilities for early detection, prevention, and effective treatments—potentially redefining cancer care as we know it today.