Pfizer's Chantix Poised for Blockbuster Sales

Pfizer (PFE) reported strong financial results Wednesday for its novel anti-nicotine pill Chantix (aka varenicline) (aka Champix - outside the US), which is thought to block the receptors in the brain that respond to nicotine versus other treatments that include the anti-depressant bupropion (aka Zyban, Wellbutrin) and nicotine replacement products such as patches, gum, and lozenges.

Revenues from Chantix grew significantly for both 4Q07 and FY07 as compared with the corresponding periods in 2006. During 4Q07, Chantix recorded revenues of $280 million compared with $68 million in the 4Q06. For the full-year 2007, Chantix revenues were $883 million compared with $101 million in 2006, the year it was launched.

Pfizer reports that Chantix has already been used by over 5 million people worldwide and as a retail pharmacist I have witnessed its popularity and buzz factor first-hand. Many patients have reported success at quitting their smoking and chewing tobacco habits within a few months or less of starting Chantix.

Chantix got off to a slow start after launch, but sales have ramped up exponentially and the drug has better insurance coverage at present, as more health plans realize the long-term health benefits and cost savings of getting their patients to kick their nicotine habits. Even without insurance coverage, many patients are willing to pay around $120 for a one-month supply or roughly $4 per day for Chantix as the cost of cigarettes and chewing snuff has skyrocketed in recent years and add up significantly over years of regular use.

Despite recent reports of erratic behavior in a few patients taking Chantix and the possibility for sleep disturbances and/or vivid dreams, most people taking the drug report few, if any, side effects. Also, the prescribing habits of practitioners in my area have changed noticably in the last year, and now rarely include prescriptions for bupropion or nicotine replacement products as Chantix appears to be the dominant player for putting an end to nicotine addiction. With FY07 revenues of $48.6 billion for Pfizer, Chantix represents just under 2% of total sales. However, the drug is poised to exceed the $1 billion blockbuster milestone shortly and represents a successful launch and source of sales growth for Pfizer.

Comments

[firboy4]

I hope you are right!!! I have owned some PFE stock for long enough now, watching it either go down or flounder around.