According to a report published by Reuters, New York-based pharmaceutical and biotechnology giant Pfizer, Inc.’s (NYSE: PFE) COVID-19 drug Paxlovid has received conditional approval from China’s National Medical Products Administration.
Paxlovid is the first oral medication that has been approved in the country for the treatment of COVID-19. The approval is for the treatment of adults with mild to moderate forms of the disease who are at high risk of it becoming a severe condition.
The regulator said Pfizer needs to conduct additional studies on the drug.
A company representative said, “This is an important milestone in our fight against COVID-19.”
Pfizer expects Paxlovid sales to total $22 billion this year.
Analysts’ Opinion
Last week, Morgan Stanley (NYSE: MS) analyst Matthew Harrison maintained a Hold rating on the stock and lowered the price target to $55 from $60 (8.3% upside potential).
Harrison said, “Pfizer’s large and growing cash balance will be a key source of investor debate in the coming months, but we expect cash generation to return to baseline over the next few years.”
Additionally, Mohit Bansal of Wells Fargo (NYSE: WFC) reiterated a Buy rating but reduced the price target from $65 to $60 (18.2% upside potential).
Bansal is of the view that Pfizer’s 2022 soft core business guidance is a matter of concern.
Overall, the stock has a Moderate Buy consensus rating based on 8 Buys and 9 Holds. The average Pfizer stock price prediction of $59.80 implies 17.8% upside potential. Shares have gained nearly 45% over the past year.
Hedge Fund Trading Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Pfizer is currently Very Positive, as the cumulative change in holdings across all 27 hedge funds that were active in the last quarter was an increase of 4.4 million shares.
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