Today’s Pfizer (NYSE:PFE) stock traders have multiple important news items to consider. First of all, Pfizer is getting ready to commercialize Paxlovid in China through a local partner. Meanwhile, the World Health Organization (WHO) is meeting on Jan. 27 to discuss the state of Covid-19 and decide if it remains a global health emergency. PFE stock hasn’t moved much yet on these developments, but there is potential for a rally in the coming days.
Reportedly, Pfizer’s partner in China could commence distribution of Paxlovid, a Covid-19 drug, within three to four months. This news comes in the wake of increased infections in China.
Generally, Paxlovid is prescribed to treat mild-to-moderate Covid-19 cases. Pfizer has an advantage in this market, as Paxlovid is the “only foreign Covid medication approved for use in China,” according to the Financial Times.
Pfizer already has a deal with Zhejiang Huahai to produce Paxlovid in China. So, let’s see how the market is responding to this development.
What’s Happening With PFE Stock?
As of this morning, PFE stock hasn’t moved much, trading slightly in the red. This is perhaps an unexpected market response to Pfizer’s announcement about Paxlovid.
This neutral to slightly negative reaction may be due to a recent report from Reuters. Apparently, Pfizer says it is not in discussions with Chinese authorities to license a generic version of Paxlovid. Some financial traders may be disappointed by that news.
Meanwhile, the WHO is reportedly set to convene on Jan. 27 to discuss whether or not Covid-19 is still a global emergency. Back in January 2020, the organization declared Covid-19 a Public Health Emergency of International Concern (PHEIC).
In other words, the WHO may decide that Covid-19 isn’t currently a global emergency. That certainly wouldn’t help Pfizer, so PFE stock traders may be reacting in anticipation of the WHO decision as well. Nevertheless, the commercialization of Paxlovid in China could catalyze Pfizer’s share price at some point in the future.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
