Here's What to Expect From Pfizer's Oncology Drugs in Q3 Earnings

Pfizer PFE is one of the largest and most successful drugmakers in oncology. It boasts a strong portfolio of approved cancer medicines as well as a robust pipeline of cancer candidates with a focus on multiple modalities, including small molecules, antibody-drug conjugates (ADCs) and immuno-oncology biologics. 

The addition of Seagen in 2023 strengthened its position in oncology by adding four ADCs — Adcetris, Padcev, Tukysa and Tivdak. The acquired Seagen products contributed meaningfully to Pfizer’s revenues in the first half of 2025.

Oncology sales comprise more than 25% of Pfizer’s total revenues. Its oncology revenues grew 9% in the first half of 2025. Investors will be keen to know how its oncology segment performed in the third quarter when the company announces results on Nov. 4.

Pfizer’s oncology sales in the third quarter are expected to have been driven by higher sales of key drugs like Xtandi, Lorbrena and the Braftovi-Mektovi combination, which should make up for declining sales of drugs like Ibrance.

Sales of Ibrance are likely to have declined due to continued competitive pressure across markets, generic entry in select international markets, and the impact of Medicare Part D redesign in the United States. Medicare Part D redesign is expected to have had a negative impact on sales of some other oncology drugs like Xtandi and Lorbrena.

Among the ADCs added from the 2023 acquisition of Seagen, while strong demand trends are likely to have pulled up sales of Padcev, competitive pressure in the United States is expected to have hurt sales of Adcetris. A one-time benefit from a transition to a wholesale distribution model for Seagen products pulled up Padcev’s sales in the second quarter, which will be absent in the third quarter.

Pfizer has ventured into the oncology biosimilars space and markets six biosimilars for cancer. Revenues from oncology biosimilars are likely to have risen in the third quarter.

Pfizer should also provide updates on its oncology candidates in late-stage development, like sasanlimab, vepdegestrant and sigvotatug vedotin on the third-quarter conference call.

Competition in the Oncology Space

Other large players in the oncology space are AstraZeneca AZN, Merck MRK and Bristol-Myers BMY.

For AstraZeneca, oncology sales now comprise around 43% of total revenues. Sales in its oncology segment rose 16% in the first half of 2025. AstraZeneca’s strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).

Merck’s key oncology medicines are PD-L1 inhibitor Keytruda and PARP inhibitor Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for around 50% of Merck’s pharmaceutical sales. Keytruda’s sales rose 6.6% to $15.1 billion in the first half of 2025.

Bristol-Myers’ key cancer drug is PD-L1 inhibitor, Opdivo, which accounts for around 20% of its total revenues. Opdivo’s sales rose 9% to $4.82 billion in the first half of 2025.

PFE’s Price Performance, Valuation and Estimates

Pfizer’s stock has declined 1.0% so far this year against an increase of 8.0% for the industry. 

From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its 5-year mean. Going by the price/earnings ratio, the company’s shares currently trade at 8.45 forward earnings, lower than 15.89 for the industry and the stock’s 5-year mean of 10.62.

The Zacks Consensus Estimate for 2025 earnings has risen from $3.11 per share to $3.12 per share, while that for 2026 has gone up from $3.09 to $3.10 per share over the past 60 days.

Pfizer has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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