Pfizer (PFE) Buys Exclusive EU Rights to Anti-Fungal Drug

Pfizer, Inc. PFE announced a deal to buy exclusive EU commercialization rights to an anti-fungal treatment, Cresemba from Swiss pharma company, Basilea Pharmaceutica Ltd.

Cresemba, an intravenous (IV) and oral azole antifungal for the treatment of two serious infections, invasive aspergillosis and invasive mucormycosis, is presently marketed both in the U.S. and EU.

Per the deal, Pfizer will be exclusively entitled to distribute and commercialize Cresemba (isavuconazole) in Europe, including Austria, France, Germany, Italy and the United Kingdom where Cresemba is already available. However, Pfizer does not have any marketing rights in Nordic countries (Denmark, Finland, Norway, Sweden, Iceland) or in the U.S. Cresemba is marketed by Basilea's license partner, Astellas Pharma in the U.S.

Meanwhile, Pfizer will also be responsible for launching the medicine in additional countries, mainly in Europe, over this year and next. However, Basilea will continue to hold the marketing authorization for EU. Basilea mentioned that it received an upfront payment of 70 million swiss francs from Pfizer while being entitled to additional milestones of up to $427 million and double-digit royalties on sales

Pfizer's shares have risen 0.7% so far this year, compared with an increase of 10.7% for the Zacks classified Large Cap Pharma industry.

Pfizer enjoys a strong position in the anti-infective space and markets many antifungals like Vfend, Zithromax and Zavicefta.  Zavicefta was added to Pfizer's portfolio with the Dec 2016 acquisition of AstraZenecaplc's AZN anti-infectives business. The latest collaboration strengthens its position in this therapeutic market.

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

Some better-ranked stocks in the large-cap pharma sector are Bayer Aktiengesellschaft BAYRY and Sanofi SNY, both carrying a Zacks Rank #2 (Buy).

Shares of Bayer have risen 31% this year so far while estimates for both 2017 and 2018 have risen 1.3% in the past 30 days.

Shares of Sanofi have risen 17.9% this year so far. While estimates for 2017 have risen 3.2% that for 2018 are up 1.2% in the past 30 days

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