All eyes were on Pfizer's (PFE 1.02%) coronavirus vaccine sales when it reported second-quarter earnings this week -- and for good reason. The company has fully vaccinated more Americans than its rivals and has established itself as a leader in the worldwide vaccine market, too.
Due to more and more orders, Pfizer now expects full-year coronavirus vaccine sales to total $33.5 billion, up from $26 billion. And Pfizer says vaccine revenue will make up 42% of its overall revenue this year.
But this isn't the only coronavirus story for Pfizer. The company is working on another program that could give it a major spot in a second coronavirus market. I'm talking about the treatment market, and a potential product may be just around the corner.
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An exciting update
During Pfizer's earnings report, it offered an exciting update on a potentially game-changing product -- its investigational pill to treat COVID-19. The company is studying an antiviral protease inhibitor in clinical trials. This type of drug -- used to treat other infectious diseases such as HIV -- stops viral replication, and therefore reduces viral load.
This is useful for coronavirus because a lower viral load means fewer symptoms. And this, in turn, reduces the risk of hospitalization and death.
Pfizer's protease inhibitor would be prescribed for five days at the first sign of illness. The company also is studying if the candidate may work as a prevention method when given to people in close contact with someone who already has COVID-19.
A phase 1 study showed positive safety results and drug tolerability. Pfizer began a phase 2/3 trial of the investigational pill this month to study efficacy.
The candidate already demonstrated strong antiviral activity in preclinical studies. And here's the big news: If all goes well, Pfizer will file for Emergency Use Authorization (EUA) in the fourth quarter. That would be exactly one year after its EUA submission for its coronavirus vaccine.
Prevention and treatment
Of course, the idea of participating in the prevention and treatment market is positive. But why am I so convinced Pfizer can actually dominate in treatment, as well as in prevention? We already know the reasons behind Pfizer's vaccine successes. The company was first to market with a highly efficacious product. And the company has manufactured and delivered its vaccine worldwide without any major problems.
Now let's talk about the treatment market. Right now, patients' options are limited. Treatments are often for hospitalized patients. I'm thinking of Gilead Sciences' Veklury. Or for high-risk individuals at a certain stage of illness only, I'm thinking of monoclonal antibody treatments.
So far, there isn't a simple treatment that everyone can take as soon as they show symptoms. If Pfizer can make progress here, results could be big -- from both a healthcare and revenue perspective.
What does this mean for investors?
As always, I wouldn't recommend buying a stock for just one product or pipeline candidate. And that's why Pfizer makes a great coronavirus bet. Many products contribute to the Pfizer story.
The company already has one successful coronavirus product on the market -- its vaccine -- and its potential treatment is close to commercialization. And beyond COVID-19, it boasts other growing products. Quarterly revenue climbed in all treatment categories except one in the quarter.
Pfizer shares haven't reflected all of this success. Biotech companies, such as its vaccine partner BioNTech, have climbed more quickly and to a greater degree during the vaccine race.
Since Pfizer doesn't rely only on the vaccine, the stock hasn't moved in a big way on positive or negative coronavirus news.
Pfizer shares probably won't offer you a quick gain -- no matter how great its news. But that doesn't mean it won't reward investors. I expect that it will do so as the vaccine and other products add to revenue and profit in the coming years. That's why it's a good idea to buy shares of Pfizer now and hold on for the long term.
