Enanta Initiates Patent Lawsuit Against Pfizer Over Paxlovid in EU

Enanta Pharmaceuticals has filed a patent lawsuit against Pfizer over the COVID-19 drug Paxlovid, targeting Pfizer's operations in the EU. Pfizer's stock saw a 10% increase over the last quarter, despite mixed market trends, due to strong Q2 earnings and strategic product developments. The legal action could impact Pfizer's revenue and earnings forecasts, and the stock is currently trading at a 13.37% discount to its consensus price target of $28.77.

Title: Enanta Pharmaceuticals Files Patent Lawsuit Against Pfizer Over Paxlovid

Enanta Pharmaceuticals has initiated legal action against Pfizer over a patent infringement related to the COVID-19 drug Paxlovid, targeting Pfizer's operations across the EU. Despite mixed market trends, Pfizer's stock saw a 10% increase over the last quarter, driven by strong Q2 earnings and strategic product developments. The legal action could impact Pfizer's revenue and earnings forecasts, and the stock is currently trading at a 13.37% discount to its consensus price target of $28.77.

Enanta Pharmaceuticals, known for co-developing hepatitis C virus treatment glecaprevir/pibrentasvir with AbbVie, filed a lawsuit in the European Union's Unified Patent Court (UPC) against Pfizer. The lawsuit claims that Pfizer infringed on a patent describing protease inhibitors invented by Enanta's scientists. The patent in question, European Patent No. EP 4 051 265, is the European counterpart of US patent number 11,358,953, which is the center of the ongoing US lawsuit. Enanta is seeking a determination of liability for use and infringement of the patent in the manufacture, use, and sale of Paxlovid [1].

Pfizer, which has reported strong Q2 2025 results, has not yet responded to the latest lawsuit. However, the company has previously stated that it is confident in its intellectual property (IP) surrounding Paxlovid and will respond in due course in court. The lawsuit adds another layer of complexity to Pfizer's outlook, potentially impacting its revenue and earnings forecasts. Over the past year, Pfizer's total return, including both share price and dividends, was a 6.44% decline, compared to a US pharmaceutical industry return of -13.6% [2].

Investors should note that Pfizer's stock is currently trading at a 13.37% discount to its consensus price target of $28.77. The market might have already priced in some of the anticipated future risks, while the legal battle and operational challenges may continue to influence investor sentiment and the company's valuation dynamics. The legal challenge follows a Phase III trial failure for a sickle cell disease candidate, which Pfizer purchased as part of a $5.4bn takeover of Global Blood Therapeutics in 2022 [3].

References

[1] https://finance.yahoo.com/news/pfizer-battles-another-paxlovid-lawsuit-165337183.html
[2] https://finance.yahoo.com/news/enanta-files-patent-lawsuit-against-174150813.html
[3] https://www.investors.com/research/options/pfizer-pfe-stock-low-volatility-breakout-long-strangle-trade-options/