Pfizer (PFE) has recently been struggling to get an edge in the pharmaceutical industry. Not only is it struggling to get a major drug approved, but it also is on the defensive in several ways. Based on the recent news events surrounding the company, I find little reason to invest in Pfizer stock, and I don’t think it will be able to maintain its price (over $22) as it sits so near its 52-week high. Not only that, but Pfizer’s P/E ratio sits at 21.30, certainly too high for a company dealing with a string of bad news.
Delays in approval are never good things for pharmaceutical companies, especially considering the demand for new treatments. Bristol Myers Squibb (BMY) and Pfizer have failed to receive approval for their “top experimental drug,” which is a blood thinner called Eliquis. The U.S. Food and Drug Administration is not seeking new studies at the moment, so this is not such terrible news for the companies. It does want clarification on its completed trials though, so it remains unclear as to how this will play out for the two companies. Either way, this will have at least a temporarily negative effect on the stock prices for both companies.
This is not the only rejection that Pfizer is dealing with at the moment. A European committee has decided that Pfizer cannot market its Gaucher disease drug Elelyso because competitor Shire (SHPGY) has exclusive rights for treating the disease.To continue reading, click here.