Healthcare stocks like Pfizer (NYSE:PFE) often gain on a handful of key circumstances. One of the biggest is a governmental body approving a drug for use within its borders. That’s what happened to Pfizer earlier today, as shareholders gave it a little extra push in Friday afternoon’s trading. Specifically, Pfizer landed a recommendation from the European Medicines Agency to market Pfizer’s Abrysvo drug in Europe.
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Abrysvo is a treatment for respiratory syncytial virus (RSV) and can work as well for children as it does for adults. Abrysvo also works for expecting mothers and can offer passive immunity for children as young as six months. The European Medicines Agency doesn’t have the final word, though; its recommendation will go to the European Commission, who will, from there, make the call on a full marketing authorization.
The news comes at a good time for Pfizer, as it just had a significant setback take place. A tornado damaged a Pfizer factory in North Carolina, which all but ensures some shortages will follow. That factory makes about 25% of Pfizer’s supply of “sterile injectable medicines,” according to the Associated Press, which will put hospitals in a troubling position. It will also leave Pfizer scrambling to try and get those drugs in the right hands before hospitals start looking for backup suppliers.
However, Pfizer still enjoys at least some analyst support. Analysts call Pfizer stock a Moderate Buy, with six Buy ratings and 11 Hold ratings. Further, with an average price target of $46, Pfizer stock offers its investors 23.37% upside potential.
