Pfizer's new chief scientific officer prioritizes high-return projects in R&D

In October 2023, Goldman Sachs hosted a meeting with Pfizer Inc.'s newly appointed Chief Scientific Officer Chris Boshoff, effective January 1, 2025. In his discussion, Boshoff emphasized a strategic shift in Pfizer's research and development focus, aimed at prioritizing high-return initiatives while keeping a balanced mix of high-risk and low-risk projects. This shift is critical for positioning the company for future growth, especially given the increasing competition in the pharmaceutical industry and the ever-changing landscape of healthcare demands. With an R&D budget ranging from $11 to $12 billion, which constitutes a significant percentage of the company’s revenue, Boshoff indicated that Pfizer plans to shift more resources to areas such as Oncology, obesity, cardiovascular, and metabolic diseases. He pointed out that opportunities in anti-obesity medicines are still nascent, with significant room for growth. The market for these medications is expected to evolve with segmentation based on co-morbidities and various treatment mechanisms. Boshoff envisions that oral delivery methods, which Pfizer focuses on, will play a vital role in this growing market. During the meeting, Boshoff also expressed confidence in one of Pfizer's clinical-stage molecules potentially being among the first oral GLP-1/AOMs available in the U.S. market. This positions the company strategically to cater to the increasing demand for weight management solutions integrated into primary care practices. The underlying philosophy is to leverage Pfizer's long-standing reputation for producing widely accepted medications, an advantage that could help them capture market share in the anti-obesity sector. Additionally, Boshoff highlighted the continuing reliance on and expected demand for Pfizer's existing COVID-19 products, Comirnaty and Paxlovid, projecting steady demand due to ongoing COVID-19 mutations. He acknowledged the challenges faced in the immunology pipeline but reassured stakeholders of Pfizer's commitment to advancing select early-stage projects despite setbacks. Overall, the conversations at this pivotal meeting cast a forward-looking stance on Pfizer's future in a time of rapid change within the pharmaceutical landscape.