The U.S. Food and Drug Administration’s (FDA) Vaccines and Related Biological Products Advisory Committee (VRBPAC) voted to recommend the FDA grant Emergency Use Authorization (EUA) for Pfizer’s COVID-19 vaccine in children 5 to 11 yesterday.
The news didn’t help the stock price, however, which was down 1.8% this morning.
The FDA is expected to make its decision in the coming days. If authorized and subsequently recommended by the U.S. Centers for Disease Control and Prevention’s (CDC) Advisory Committee on Immunization Practices (ACIP), the Pfizer-BioNTech COVID-19 Vaccine will be the first COVID-19 vaccine available for use in children 5 to 11 in the U.S., Pfizer said in an announcement.
Pfizer also announced that it expects to begin shipping pediatric vaccine doses immediately upon approval, as directed by the U.S. government.
Keith Speights, a contributing Motley Fool analyst, told GOBankingRates that the FDA advisory committee’s vote wasn’t surprising, and while the FDA doesn’t have to go along with the committee’s recommendation, it’s highly likely to do so.
“What might be surprising to investors, though, is that Pfizer stock didn’t rise on the news and actually slipped a little in early trading on Wednesday,” Speights said. “The reason why is that the U.S. government has already bought more than enough doses of the Pfizer-BioNTech vaccine to give to all children ages five to 11 and still meet the demand in other age groups. While the increased likelihood of authorization of the vaccine for younger kids is good news for Pfizer, it won’t have any near-term financial impact on the company,” he added.
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Pfizer will report its third quarter earnings on November 2, and the Zacks consensus estimate for vaccine products is $14.51 billion, respectively.
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Last updated: October 27, 2021
This article originally appeared on GOBankingRates.com: FDA Advisory Committee Recommends Pfizer Vaccine for Kids — Is It Worth an Investment Ahead of Approval?