How will FDA’s approval of Pfizer’s oncology drug affect sales of Roche’s epic cancer drug?

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[Ignatius Bose]

The US Food and Drug Administration (FDA) approved Pfizer Inc.’s (NYSE:PFE) oncology biosimilar Zirabev, the US pharma giant confirmed on Friday. The drug, first launched by Roche Holding AG under the name Avastin is used to treat five types of cancer including metastatic cervical cancer, metastatic renal cell carcinoma, cell lung cancer, recurrent glioblastoma, and metastatic colorectal cancer.

Earlier this year, Pfizer received approval to sell its Avastin biosimilar in Europe while in the US, the FDA approved Amgen Inc.’s Mvasi as the first biosimilar to Roche’s blockbuster cancer treatment drug.

Avastin has helped the Swiss pharma giant garner revenues of close to $7bn last year, but the company’s sales of its leading cancer drugs including Herceptin, Rituxan, and Avastin have been on a decline this year due to competition from biosimilars, affecting the drug maker’s profits and share prices respectively.

Shares of Roche Holding AG (SWX:ROG) have gained about 3.6% year to date while Pfizer is down about half a per cent YTD.