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Pfizer hopes to get emergency food authorization from the Food and Drug Administration for its Covid-19 vaccine, produced in collaboration with BioNTech, in October – a timeline that is possible, and not the only positive for the biotech industry, according to a Mizuho analyst .
Mizuho senior health analyst Vamil Divan discusses Pfizer’s timeline (ticker: PFE) for drug approval in a call Wednesday with Barron’s readers. “[Pfizer] talk about maybe having some interim data that may be enough for an emergency permit in the October time frame, “Divan said.
Judging from the data needed to approve Gilead Sciences (GILD) treatment brake inhibitor for emergency use, “it is likely possible to see something approved [in] October, or certainly at the end of the year, ‘the analyst said.
Investors should not see Covid-19 vaccine development as a zero-sum game, Divan added, pointing to Pfizer’s contract with the U.S. government to deliver 100 million doses later this year. “Specifically, Pfizer’s vaccine is a two-shot series. That’s 50 million people they could potentially cover later this year, “Divan said.
That would reduce the number of doses needed to vaccinate the entire U.S. population, let alone the rest of the world, he said, leaving room “for many of these companies to put their products on the line.” market and make an impact. “
While Divan says he expects to receive at least one – and possibly more – vaccines next year, her outlook is likely to be cut, with the first doses going to healthcare professionals, first responders, and those who are at the highest risk of complications of the disease. “By the second half of the year, there may be enough supply to really go out to the masses,” he said.
Pfizer’s other major effort, a treatment for breast cancer, has been closely watched by investors. Disappointing news in June about a trial with the drug, Ibrance, caused the stock market crash. Since then, the show has been restored, in large part because of Pfizer’s fax news, but Divan says there’s more to Pfizer than his fax program.
“We think there are other parts of the Pfizer story that are interesting, outside of the Covid vaccine and outside the space for immunology of breast cancer,” he said. Barron’s readers, reflect a point of a note released by the analyst Wednesday. “We believe Pfizer’s general pipeline (outside of the COVID-19 vaccine) is underappreciated, but fundamental investors we’ve talked to in recent weeks seem less convinced that the event will give reasons for increased enthusiasm about it. whole story, “the report stated.
Beyond Pfizer, Divan spoke during the call about AbbVie (ABBV), another one of his top picks. AbbVie acquired Allergan, the maker of Botox, last summer. Despite a direct decline in the aesthetics industry following the advent of the pandemic, “now we see that the question is really there, do people still want to get these treatments,” he said.
Although there is still uncertainty about whether patients will return, the aesthetic market quickly returned to the 2008-09 financial crisis, Divan said. “We expect something similar here, later this year or maybe more in next year than [2022], “Said the analyst, adding that aesthetics” is just a small part of the business. ”
The analyst rates both Pfizer and AbbVie Buy shares, with price targets of $ 43 and $ 111, respectively. Pfizer is currently trading at around $ 38, and AbbVie shares are trading at $ 95.08. Both stocks have high dividend yields, Divan noted, with Pfizer yielding 4% and AbbVie yielding 4.9%, according to FactSet.
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