Pharmaceutical giant Pfizer received a positive recommendation
Biotech and pharmaceutical company Pfizer Inc. (PFE) received a positive comment from the investment bank Citi. Despite the decrease in the COVID-19 factor, Pfizer keeps the opportunity to increase sales of coronavirus pills. Successful vaccination against COVID-19 in high-income countries has reduced attention to the coronavirus pandemic, including reports of new strains.
Concerns have decreased among end-users of medical products, in the rhetoric of politicians and the news agenda of the media. Against this background, some investors have concerns that Pfizer cannot sell the previously expected number of Paxlovid tablets from COVID-19. Simply put, governments may prefer to opt out of purchasing Paxlovid, relying only on vaccines.
However, there is also an opposite opinion — many medical experts fear vaccines will become less effective against new strains of coronavirus. As a result, a fresh outbreak of coronavirus could lead to an explosive increase in Paxlovid sales. They share this point of view from Citi analysts, who believe that it is too early to talk about the end of the COVID-19 topic.
In addition, China may place a large order for Paxlovid tablets in order to complete quarantine measures in 2023. Against this background, Pfizer shares look inexpensive, according to Citi, and keep potential for growth. Experts of the investment bank recommend adding PFE shares to the positive watch list to monitor the favorable moment for entry.
Should note that they related this positive recommendation to the COVID-19 pandemic and, above all, the expected sales of Paxlovid tablets. But the pandemic will end eventually anyway, which may lead to a correction in Pfizer’s revenue, if the company does not increase sales by this time because of new drugs.
Pfizer is one of the world’s leaders in terms of the number of biotechnological studies. Only at the registration stage the company has 10 drugs, another 27 — a vase III clinical trials. The company has 89 candidate drugs at various stages of development.
