Why Pfizer (PFE) Is A Great Investment Choice These Days

Pfizer (NYSE: PFE)

Pfizer has been a very interesting stock to follow this year. While the stock didn’t see much growth throughout the year 2014, that hasn’t necessarily been the case for 2014 as investors have been excited about the big moves the company is making toward growth. For example, Monday and Tuesday, the company made two different announcements; both of them being filled with incredibly good news. Today, we’ll talk about the two announcements in detail, what we’ve seen from Pfizer so far this year, and what we can expect from the company throughout the rest of the year. So, let’s get right to it…

Monday’s Announcement: Pfizer To Acquire Two Vaccines From GlaxoSmithKline

On Monday, Pfizer announced that it had agreed to acquire two vaccines from GlaxoSmithKline for a total price of roughly $130 million. The vaccines being acquired are designed for vaccination against meningitis and are a clear move for PFE to expand global reach with regard to preventing meningococcal disease. The vaccines, both single dose, include…

  • Nimenrix – Nimenrix was first launched three years ago and is currently avaialable for sale in 61 countries outside of the United States.
  • Mencevax – Mencevax is currently approved in 79 countries outside of the United States and is currently used for travelers that visit countries where meningitis is a major concern.

These acquisitions are the latest break in Pfizer’s goal of reducing and controllin meningitis around the world. However, they aren’t the only moves that the company has made. As a matter of fact, just last year, PFE acquired Baxter International’s meningitis vaccine known as NeisVac-C.

Teusday’s Announcement: Pfizer Enrolled Its First Patient In The RESET Phase 3 Study

On Tuesday, Pfizer made another big announcement. The company had announced that it has enrolled its first patient in the RESET study. RESET or Rivipansel: Evaluating Safety, Efficacy and Time to Discharge, is a Phase 3 study that looks into the safety and efficacy of rivipansel for the treatment of vasco-occlusive crisis in hospitalized individuals with sickle cell disease over the age of six years. Upon the announcement of the study enrollment, Sonja L. Banks, CEO of Pfizer had the following to say…

Scientific innovation cannot forge ahead without the patients that are willing to work with the scientific community by participating in clinical trials…Patients should speak with their healthcare providers if they are interested in learning more about how to participate in the trial.”

As mentioned above, the RESET trial is a phase 3 study. The trial is a multicenter, randomized, double-blind, placebo-controlled, parallel-group study with a goal of enrolling at least 350 patients that suffer with sickle cell disease and are age six or older.

How The Market Reacted To The News

Unfortunately, the market didn’t have the reaction one would generally expect to these announcements. While there was slight growth in the stock on both Monday and Tuesday, PFE trended downward throughout the rest of the week. Currently, PFE is trading at $33.96 per share; hovering just below support.

What We’re Likely To See From PFE Moving Forward

Moving forward, I’m expecting overwhelmingly positive news in both the short and long term outlook. Here’s how I see it…

  • Short Term – In the short term, the most important thing to look at is technical data. From a technical standpoint, PFE looks like it’s ready to start moving up again. Over the past month, PFE has found support at $33.98. However, on Friday, the stock fell to $33.96; where it closed the day. At this point, it’s highly likely lat $33.96 will be the new level of support and that PFE will start climbing from here.

  • Long Term – In the long term, I’m also expecting to see bullish movements from PFE. The bottom line is that this company has a constant focus on creating better and better treatments for rare and debilitating diseases. Whether it be through an acquisition or in house innovation; their goal is to find or create treatments that prove to be effective for the masses. With strong management and a strong team of doctors and scientists, as well as a plan and a willingness to follow through, I simply couldn’t think of a scenario where this stock is likely to fall long term.

What Do You Think?

Where do you think PFE is headed and why? Let us know in the comments below!

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