PFE & AZN both want to be bigger and stronger!
Both $Pfizer(PFE)$ and $AstraZeneca PLC(AZN)$, the two biggest and most profitable pharmaceutical giants, have set their eyes on major expansion!
With billions of dollars invested in R&D, two titans are sure to hatch some "golden goose" drugs and grow even bigger. But it seems AstraZeneca's ambitions have investors cheering even more!
Ambitious
Pfizer's 2030 strategy is to boost their revenue by at least $45 billion. They're planning to do this through internal R&D, acquisitions, licensing deals, collaborations, and buying up drug assets. If all goes well, they'll have at least 8 blockbuster drugs on the market by 2030, with cancer drugs being a key focus.
Pfizer's revenue in 2023 is $58.5 billion, and its target in 2030 is $103.5 billion, which is equivalent to the record level of annual revenue created in 2022 when the COVID-19 business is booming.
But AstraZeneca's plans are even more daring! The company's revenue in 2023 is $45.8 billion, and management hopes that figure will reach $80 billion by 2030. And they plan to bring at least 20 new drugs to the market, with 12 having the potential to sell over $5 billion annually. Their focus is on cancer drugs, rare disease therapies, and biopharmaceuticals.
However, AstraZeneca's not as gung-ho on business development as Pfizer. They're more focused on pushing their current R&D pipeline forward, so they won't be saddled with too much debt. This leaves them with more cash to invest in growth or reward shareholders in the coming years. Meanwhile, Pfizer's been on a buying spree, racking up long-term debt and leverage.
Astrazeneca is better
So, if clinical trials go as planned and drugs hit the market, AstraZeneca stock is likely to outperform Pfizer in the long run.
These two are neck-and-neck in the cancer ADC (Antibody-Drug Conjugate) race, but from an investor's perspective, AstraZeneca just seems more sustainable, safer, and lower-risk.
In the pharmaceutical world, nothing's more important than a robust R&D pipeline. That doesn't mean Pfizer's plans will fail, but AstraZeneca's just got more momentum for sustained growth.
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