Pfizer (NYSE:PFE) has received a new FDA approval, and its stock has already started to rise in pre-market trading. This could auger the start of a change to the stock’s recent bad fortune.
Pfizer’s respiratory syncytial virus (RSV) vaccine for senior adults has recently been approved by the U.S. Food and Drug Administration (FDA). Interestingly, in the last month, the regulator also cleared a similar vaccine for the same age group by GSK Plc. (GSK). As interest in Pfizer’s Covid vaccine falls, the RSV vaccine could spark new business for the company.
Pfizer’s RSV Vaccine – The Details
RSV is known to be a common cause of respiratory illness globally. In the clinical trials, Pfizer’s Abrysvo was found to be 66.7% effective at preventing respiratory tract illness with over two symptoms, and 85.7% effective at preventing illness with three or more symptoms among individuals aged 60 and above.
Following this approval, the committee of the Centers for Disease Control and Prevention is expected to meet on June 21 to provide recommendations regarding the vaccine’s usage. The vaccine, known as Abrysvo, is anticipated to hit the market during the third quarter.
It is worth highlighting that Pfizer also developed a vaccine for newborns. Further, the FDA is expected to announce its final decision on the vaccine in August.
What is the Future of PFE Stock?
PFE stock has declined over 24% so far in 2023 as its topline continues to remain under pressure from falling demand for COVID vaccines. Nevertheless, the company’s efforts to expand its vaccine offerings might support revenues in the near term.
In another positive update, Seagen’s (SGEN) shareholders recently gave consent to be acquired by Pfizer in an all-cash deal worth $43 billion. This is expected to strengthen Pfizer’s oncology unit.
Overall, Pfizer received four Buy and 10 Hold recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $45.08 implies 18.6% upside potential for PFE stock.
Today, analyst Chris Shibutani of Goldman Sachs reiterated a Buy rating on the stock, with a price target that implies a 52.6% upside.
