Xtandi Sales Disappoint Pfizer, Returning Focus To The High-Priced Deal

Xtandi sales declined 11% in the first quarter due to an increase in the use of patient assistance programs, but demand grew 13%, which management said reflects the underlying strength of the prostate cancer drug.

Pfizer Inc. paid a sweet premium to buy Medivation Inc. last year for $14bn, an amount that surpassed even the high estimates of pharma analysts and left some investors questioning the value of the deal. Now, during Pfizer's first quarter sales and earnings call May 2, management admitted the primary driver behind the deal, the prostate cancer drug Xtandi (enzalutamide), performed below expectations.

Xtandi's US net sales declined 11%, due to an increased use of patient assistance programs, Pfizer reported. Demand for Xtandi...