Palantir Profitability; Generics Threaten Pfizer/BMS Drug; DoorDash to Deliver International Growth

In our weekly round-up of the top charts and market-moving analyst insights: Palantir Technologies (NYSE: PLTR) is on track to achieve full-year profitability in 2023; generics pose revenue threat to Eliquis drug from Pfizer (NYSE: PFE) and Bristol-Myers Squibb (NYSE: BMY); analysts expect DoorDash (NYSE: DASH) to see robust growth in international revenue.

Palantir Projected to Achieve Full-Year Profitability in 2023

Palantir Technologies (NYSE: PLTR) is on track to achieve full-year profitability in 2023. The application software company marked its first profitable quarter in the fourth quarter of 2022, recording net income (GAAP) of $33.5 million. According to Visible Alpha consensus estimates, the company is projected to generate net income (GAAP) of $133.7 million in 2023, up from a net loss of -$371.1 million last year.

Palantir’s total revenue is projected to grow by 16.2% year-over-year to $2.2 billion in 2023. Revenue growth for the company has been moderating over the last few years, following a revenue growth peak of 47% in 2020. Total government revenue, which accounts for around 56% of the company’s total revenue, is expected to see 17.4% growth in 2023 (down from 77% growth in 2020), while commercial revenue is projected to grow by 14.6% year-over-year in 2023.

Generics Pose Greater Threat to Eliquis (Pfizer & Bristol-Myers Squibb) Than Medicare Price Cuts

Pfizer (NYSE: PFE) and Bristol-Myers Squibb (NYSE: BMY) are partnered worldwide to commercialize the oral anticoagulant, Eliquis, which is approved to prevent blood clots and strokes in patients with atrial fibrillation. Eliquis is one of 10 prescription drugs that initially fall under the Inflation Reduction Act (IRA) of 2022, which allows Medicare to negotiate lower prices directly with drug companies. The reduction in U.S. prices is expected to take effect beginning in 2026. Of all drugs on the list, Eliquis accounted for Medicare’s highest gross expenditure of approximately $1.6 billion for the period between June 2022 and May 2023.

Despite these price cuts, the significant reduction in revenue projections for Eliquis is driven largely by U.S. and international generic competition expected to begin in 2028. According to Visible Alpha consensus, U.S. and international revenues for Eliquis decline in tandem as generics are expected to make it to market starting in 2028. Note that generic versions of Eliquis have been available in the relatively smaller markets of the UK and Canada since mid-2022.

Apixaban, the generic version of Eliquis, was approved by the FDA in January 2020, but Pfizer and Bristol-Myers Squibb filed lawsuits charging patent infringement against the generic manufacturers. In August 2020, a U.S. district court upheld two relevant Eliquis patents covering composition of matter and formulation that favored Pfizer’s and Bristol-Myers Squibb’s stance. Based on agreements reached among the two companies and generic manufacturers, generic versions of Eliquis are expected to launch after 2027.

Analysts Expect Robust International Growth for DoorDash

Analysts expect DoorDash (NYSE: DASH) to see strong growth in international revenue in 2023, based on Visible Alpha consensus estimates. U.S. revenue is projected to continue to see steady growth, reaching $7.8 billion (+24% year over year) in 2023. While the U.S. remains the primary market for the company, revenue from the food delivery app’s international operations is estimated to surge to $724 million in 2023, or +118% year over year from $332 million in 2022. According to consensus, the international segment is projected to reach over $1 billion in revenue by the end of 2024.

Outside the U.S., DoorDash has operated in Canada and Australia since 2015 and 2019, respectively. In 2021, DoorDash expanded its footprint into Germany and Japan. In 2022, the company acquired Finland-based online delivery platform Wolt. With this acquisition, DoorDash expanded into 21 major markets throughout Europe. Also in 2022, DoorDash launched operations in New Zealand, further diversifying its international reach.

The company recently announced that it will transfer its stock exchange listing to the Nasdaq Stock Market (NASDAQ) from the New York Stock Exchange. It expects to begin trading as a Nasdaq-listed company on September 27, 2023.