PFE - This Recent FDA Approval Is Bad News for Pfizer
2024-06-27 10:45:00 ET
It's no secret why Pfizer (NYSE: PFE) stock has been struggling this year. Investors are worried about how well the company will be able to do in light of waning demand for its COVID-19 vaccine and pill. It's also facing patent cliffs for many of its top drugs. That's why even though it's trading at a seemingly cheap 12 times its estimated future earnings, investors aren't piling into the stock.
And now, one of its rivals just got a big boost that may only strengthen the bearish case against Pfizer.
On June 17, the Food and Drug Administration granted approval to Merck (NYSE: MRK) for Capvaxive to help prevent pneumonia and infections caused by the streptococcus pneumoniae bacteria. The vaccine provides protection against 84% of the strains that cause invasive pneumococcal disease in adults aged 50 and over. In an interview with MarketWatch, Merck's management stated that the vaccine's protection is "broader than anything that's out there." Merck expects the vaccine will be available later this year and that it could "gain majority market share."
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This Recent FDA Approval Is Bad News for Pfizer