Both Britain and Canada have already announced that they approved Pfizer’s (NYSE: PFE) new coronavirus vaccine, having beaten out its other top competitor from Moderna (NASDAQ: MRNA) to be the first treatment on the market. The Food and Drug Administration (FDA) appointed a special advisory panel of medical experts to review the vaccine and decide whether or not it deserved a recommendation. Investors, who could follow a live stream of the committee on Thursday, we’re told that most experts ended up voting in favor of a positive recommendation for Pfizer’s treatment.
The panel in question included 22 separate experts who participated in a daylong hearing. Out of this select group, 17 voted in favor of issuing a positive recommendation, while four were negative about the treatment. Only one medical expert on the panel decided to abstain after the session.
Overall, the group agreed that the benefits of the vaccine outweighed the risks for those that were of older age. However, there was still considerable discussion about the lack of data for younger people. Dean of Chicago School of Medicine, Archana Chatterjee, said that younger people are “not a high-risk group. My concern was that the data was very limited in the 16, 17 year olds.” Others, such as Ofer Levy, from the Boston Children’s Hospital, said that “When you have 2,000 to 3,000 people a day – a day – dying of coronavirus, to me this was a very clear choice.”
Other possible concerns about the COVID-19 treatment include potential allergies. At least two patients treated with the vaccine in England this week reported having serious allergic reactions.
A positive ruling for an advisory committee almost always is a good sign that the Food and Drug Administration (FDA) will go ahead with formal approval for a drug. There’s no reason why this should be an exception, especially considering the urgent nature of this vaccine. Couple that with the fact that two other Western countries have already approved it, most investors are considering this to be a sure thing.
As for how quickly the FDA could approve this vaccine, some expect a decision to be made on Friday or over the weekend, either of which seems quite likely. It would be very shocking if the FDA took more than a few days to make a decision.
Shares of Pfizer haven’t reacted much to the news. Investors and traders are already assuming this is a sure thing, so these positive news developments are already included in the stock price. Since the beginning of this year, Pfizer is up around 20%, which is pretty mild in comparison to some other biotech stocks out there.
Pfizer Company Profile
Pfizer is one of the world’s largest pharmaceutical firms, with annual sales over $50 billion. Pfizer also spends a leading amount on research and development, close to $8 billion annually. While Pfizer historically sold many types of healthcare products and chemicals, now, prescription drugs and vaccines account for the majority of sales. Top sellers include pneumococcal vaccine Prevnar 13, neuroscience drug Lyrica, cancer drug Ibrance, cardiovascular treatment Eliquis, and immunology drug Xeljanz. Pfizer sells these products globally, with international sales representing close to 50% of its total sales. Within international sales, emerging markets are a major contributor, representing over a fifth of total company sales. – Warrior Trading News
