Pfizer Inc. (NYSE:PFE) is suffering from a mild correction so far after the FDA decided to maintain the warning of the company’s anti-smoking drug named Chantix. The request of the company to reassess the decision based on an ongoing study has been accepted but when it came to the warning on the pack, only one member out of the 18 in the advisory committee voted in favor of the company.
The drug Chantix may trigger either seizure or even suicidal impulse, according to the FDA and the consumers should be aware of neuropsychiatric issues like this. Simultaneous consumption of alcohol and the drug may lead to black out or violent behavior. This has already affected the sales of the drug and the FDA decision may decrease sales further.
Still Pfizer Inc. (NYSE:PFE) continues to get a lot of positive recommendations from the analyst community and the latest example has come from Deutsche Bank, reiterating the “Buy” rating with a price target of $38 from the earlier $37. Even higher levels of $40-42 have been set as a target for the stock from other houses. Most of this positivity comes from the amazing rally the stock had in the last few months, when it rose to $37 from $28 levels without any serious correction but that can be attributed to the $5 billion buyback of shares by the Pfizer Inc. (NYSE:PFE) from Goldman Sachs.
The technical picture looks strong too as the series of higher highs and higher lows is maintained, keeping the long term uptrend intact. Most of 2013-2014 was spent in a sideways range but that phase seems to be over with a new multi-year high February 2015. The band of $32-33 can be expected to provide strong support on any dip and a breakout above $36-37 may result in a very sharp rally.