Pfizer stock dips as Swiss Biotech Basilea secures rights to Fosmanogepix

November 13, 2023 05:19 AM PST | By Invezz

Pfizer stock dips as Swiss Biotech Basilea secures rights to Fosmanogepix — Image source: Invezz

Basilea’s acquisition of Fosmanogepix rights

Basilea Pharmaceutica entered into an agreement with Pfizer’s subsidiary, Amplyx Pharmaceuticals, to acquire rights to Fosmanogepix.

Basilea will pay an upfront sum of $37 million and could potentially make additional sales-based milestone payments totalling up to $110 million to Amplyx.

This move is part of Pfizer’s broader efforts to expand its antimicrobial pipeline, following its acquisition of Amplyx in 2021.

Pfizer stock price

Following the Basilea announcement, Pfizer’s stock experienced a drop, reaching $29.48 after a 0.67% loss today. The stock had dipped to $29.44 in pre-market hours.

The day range for Pfizer stock is between $29.03 and $29.82, while the year range spans from $29.03 to $54.93, indicating the broader fluctuations in Pfizer’s stock value over the past year.

The Pfizer (PFE) stock movement aligns with Pfizer’s acknowledgement of weakening demand for its Covid products which prompted the company to announce a $3.5 billion cost-cutting plan.

Pfizer’s narrower-than-expected Q3 loss

On Tuesday, Pfizer reported a narrower-than-expected adjusted loss for the third quarter, despite challenges faced by its Covid antiviral treatment Paxlovid and the Covid vaccine.

The pharmaceutical giant recorded a $5.6 billion charge for inventory write-offs in Q3, with $4.7 billion attributed to Paxlovid and $900 million to the Covid vaccine. This charge reflects lower-than-expected usage of COVID-related products, emphasizing the shifting dynamics in the pharmaceutical market as the demand for such products wanes.

Investors are closely monitoring Pfizer’s ability to navigate the evolving pharmaceutical landscape, particularly as it transitions its Covid-related businesses to the commercial market.

Notably, Pfizer continues to make strategic moves, including the pending acquisition of cancer therapy maker Seagen for $43 billion, the pharmaceutical giant aims to position itself for future growth. The European Commission’s recent approval of the Seagen acquisition adds to Pfizer’s ambitious plans, with expectations that the deal could contribute more than $10 billion in risk-adjusted sales by 2030.

The post Pfizer stock dips as Swiss Biotech Basilea secures rights to Fosmanogepix appeared first on Invezz

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