While drug maker Pfizer (NYSE:PFE) made a lot out of its gains from the pandemic era as one of the first companies to roll out a vaccine against COVID-19, those days couldn’t last forever, and Pfizer got to work trying to build its next big winner. But along the way, it also had to take on a court case, and a recent settlement left investors modestly pleased, sending shares up fractionally in Thursday afternoon’s trading.
In this case, it was Pfizer’s Wyeth unit that drew the lawsuit, as several drug purchasers got together to take it on. Wyeth allegedly colluded with Teva (NYSE:TEVA) in a bid to delay the release of a generic equivalent for Wyeth’s Effexor XR drug. The lawsuit, reports note, entered its 12th year of existence not so long ago, and it was probably a relief all around that Wyeth advanced a settlement.
The settlement called for Wyeth to pay $39 million to resolve the claims, though Teva will apparently still be on the hook. It certainly didn’t hurt matters for Wyeth that it won one judgment back in 2014 that declared it had not made “reverse payments” to Teva, though that was later reversed on appeal.
Targeting RSV
Meanwhile, Pfizer is advancing its product line in other ways, and this time, pursuing a newer disease that’s captured more than a little attention lately: respiratory syncytial virus (RSV). Pfizer is looking to set up approval filings with the Food and Drug Administration (FDA), as its Abrysvo treatment has some new data about its effectiveness with adults at high risk. It already won a set of approvals last year, offering protection for adults 60 and older and then for babies. Thus, with the newest approvals, it may be able to expand its market further.
What Are Analysts Saying About Pfizer Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PFE stock based on seven Buys and 11 Holds assigned in the past three months. After a 33.25% loss in its share price over the past year, the average PFE price target of $31.44 per share implies 19% upside potential.
