Pfizer Inc. (PFE) recently reported results from a late-stage trial (ORAL Solo – 1045) on tasocitinib (CP-690,550) in patients with signs and symptoms of moderate to severely active rheumatoid arthritis (RA). The study met two primary endpoints after three months of treatment with tasocitinib. The candidate demonstrated a statistically significant reduction in the signs and symptoms of moderate to severely active RA and an improvement in physical function of the patients as compared with placebo.
Athough patients in the tasocitinib arm experienced a higher rate of disease remission compared with placebo, the results were not statistically significant.
The trial enrolled 611 patients with moderate to severely active RA who did not respond adequately to at least one disease-modifying antirheumatic drug. These patients received either tasocitinib 5 mg or 10 mg monotherapy or placebo twice a day for a period of three months. After which, the patients in the placebo group were randomized to receive tasocitinib 5 mg or 10 mg in a blinded manner.
Pfizer also reported data from an ongoing phase II/III trial (ORAL Sequel – 1024) on tasocitinib. The study demonstrated results consistent with an earlier trial and showed sustained efficacy over 24 months of treatment with tasocitinib when administered as monotherapy or in combination with methotrexate.
The ORAL Sequel (1024) trial is evaluating the safety and efficacy of tasocitinib 5 mg or 10 mg given twice daily over a period of 24 months, for the treatment of moderate to severely active RA.
Neutral on Pfizer
We currently have a Neutral recommendation on Pfizer, which is supported by a Zacks #3 Rank (short-term Hold rating). The company recently reported below par third quarter earnings. We believe that near-term earnings growth will come in the form of cost cuts and share repurchases. While Pfizer brings with it an attractive biologics platform and complementary products and businesses, we do not believe they are sufficient enough to sustain long-term, top-line growth.
Longer-term growth will be dependent on successful drug development. Pfizer has been conducting several business development activities including acquisitions and partnership deals to drive long-term growth. Major deals announced recently include the company’s upcoming acquisition of King Pharmaceuticals Inc. (KG), which should help strengthen Pfizer’s presence in the pain management market.
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