Pfizer could sell some assets, convert others into new companies amid broader refocus

A Pfizer representative told MarketWatch via email that the moves were intended to help the company differentiate itself.

“Possible options could include collaborations with existing biotechnology or biopharmaceutical companies or establishing a new company, depending on what enables the best path forward,” the spokeswoman said.

Barron’s reported that the company said that selling some assets was also an option. According to Barron’s, the segments that Pfizer is targeting for so-called “externalization” were in early stage rare-disease programs focused on cardiology, neurology and gene-therapy programs that weren’t yet under trial. Pfizer is also weighing such options for its gene-therapy manufacturing plant in Durham, N.C., that opened in late 2021, Barron’s said. That facility was part of an $800 million investment, over six years, to build three such facilities.

The spokeswoman said that within rare diseases, Pfizer will be shifting to invest in areas like rare and benign hematology — or medications that target blood disorders — and gene editing. And the company said it would pivot from having a rare-disease research unit “to aligning key rare-disease programs to therapeutic areas across our research units.”

Pfizer will also narrow its cancer research around breast and prostate cancer, among other select areas. It will also look to “externalize” its research site in Boulder, Colo.

Pfizer’s moves won’t affect rare-disease medications whose development are in the later stages, Barron’s said. The biopharma industry over recent years has leaned in to developing treatments for rare diseases, Barron’s noted, but added that critics have argued that the focus on treating rare diseases has come at the expense of those that aren’t as rare.

Shares of Pfizer dipped 0.06% after hours on Thursday. During regular trading, the stock finished 0.9% lower.

On Wednesday, BofA analysts downgraded Pfizer stock, as sales from its COVID-19 vaccines and treatments start to contract.

“Pfizer has done a very good job at expanding the late-stage portfolio internally and from (business development)/M&A and has a number of exciting new launches in migraine, RSV, ulcerative colitis and hematology/oncology on the horizon,” analysts there wrote in a research note.

“That said,” they continued, “these products and others in the Phase 3 pipeline could take years to contribute to the P&L, at a time when the COVID franchise is likely to be in persistent decline.”