Pfizer (PFE) will buy privately held respiratory syncytial virus drug maker ReViral for up to $525 million.
Wall Street liked the deal–the stock was up 4.33% today, April 7–because it fits with Pfizer’s RNA virus program–which produced a successful vaccine for Covid-19. And the acquision adds to Pfizer’s pipeline targeting respiratory syncytial virus, a pathogen that leads to lower respiratory tract infections in high-risk populations. Pfizer is competing with Moderna (MRNA) and other companies on RSV vaccines.
Wall Street has been asking what comes next for Pfizer after the Covid-19 Pandemic runs its course. Pfizer analysts currently call for more than $107 billion in 2022 sales. Then, according to FactSet, they expect roughly $82 billion in sales in 2023 before sales fall below $70 billion in subsequent years.
Pfizer said it believes ReViral’s research could ultimately generate $1.5 billion in sales. ReViral is working on antiviral therapeutics for RSV, mainly the oral inhibitor sisunatovir that blocks fusion of RSV to host cells. The therapy was found to significantly reduce viral load during a phase 2 challenge study in healthy adults.
Pfizer’s $525 million deal includes upfront and development milestones.
Pfizer is a member of my Dividend Portfolio. The shares are up 45.5% since I added them to the portfolio on January 28, 2020. The stock pays a 3.03% dividend.