The pharma sector has been pretty active on the acquisition
front over the last few years with several companies looking to
boost their pipelines and product offerings in the face of generic
Earlier this week,
) announced that it has acquired a controlling interest in Redvax
Gmbh, a spin-off from Swiss biopharma company Redbiotec AG. With
this acquisition, Pfizer's vaccine pipeline will gain a preclinical
human cytomegalovirus (CMV) vaccine candidate.
While financial details of the agreement were not disclosed,
Pfizer said that together with the vaccine candidate it has also
bagged intellectual property and a technology platform related to a
second, undisclosed vaccine program.
With the addition of the CMV vaccine program, Pfizer will be one
of the leaders in CMV research and development. CMV, a herpes
virus, is estimated to infect about 50% - 90% of adults. According
to the U.S. Centers for Disease Control and Prevention (CDC), in
the U.S. alone, every year about 5,000 children develop lasting
health problems caused by CMV.
We are positive on Pfizer's efforts to boost its vaccines
pipeline. The company's Global Vaccines segment accounted for 8.7%
of total sales in the first nine months of 2014. Late last year,
Pfizer acquired Baxter International's Inc. (
) portfolio of marketed vaccines. Pfizer also launched Trumenba,
its meningococcal B vaccine last year.
We believe Pfizer will continue pursuing bolt-on acquisitions
and deals to boost its portfolio and pipeline.
Pfizer is a Zacks Rank #3 (Hold) stock. Some better ranked
stocks in the health care sector include AbbVie Inc. (
) and Allergan Inc. (
). Both are Zacks Rank #2 (Buy) stocks.
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