US stocks closed mixed on Tuesday, with the Nasdaq Composite leading the charge with a gain of over 100 points. Pfizer’s strong Q3 earnings boosted investor sentiment, while several other companies reported mixed results. The broader market saw gains in communication services, while utilities struggled. Meanwhile, Asian markets closed mixed, while European shares were mostly lower.
Pfizer exceeded analysts’ expectations for the third quarter, fueled by robust sales of Paxlovid and growth across its portfolio. The company also raised its revenue and earnings forecasts for the year, reflecting strong demand for its COVID-19 treatments and other key products.
Investors are closely watching several major companies as they report their quarterly earnings this week. Key players include Pfizer, Phillips 66, Ford, McDonald’s, and Alphabet. Find out what analysts are expecting and how the markets are reacting.
The CDC’s Advisory Committee on Immunization Practices (ACIP) has recommended lowering the pneumococcal vaccination age from 65 to 50, aiming to protect a broader population from potentially life-threatening pneumococcal diseases. This decision is based on the high incidence of these infections in adults aged 50-64, emphasizing the need for wider vaccine coverage.
The FDA has expanded the use of Pfizer’s Abrysvo RSV vaccine, now offering protection to adults aged 18-59 at high risk for respiratory illness. This move broadens the vaccine’s reach, providing a vital safeguard against RSV for a larger population, including pregnant women who can protect their infants. The decision is based on the success of the MONeT study, highlighting the vaccine’s safety and effectiveness. The approval comes as RSV vaccine sales have declined following regulatory adjustments, underscoring the crucial role Abrysvo plays in building new revenue streams for Pfizer.
Activist investor Starboard Value has sharply criticized Pfizer, accusing the pharmaceutical giant of failing to deliver on its promises of innovation and growth. Starboard argues that Pfizer’s leadership has not capitalized on the momentum following the COVID-19 pandemic, resulting in underperformance in research and development (R&D) and mergers and acquisitions (M&A). The investor highlights the company’s missed targets, inflated acquisitions, and lagging returns on investments, calling for the board to hold management accountable.
Former Pfizer CEO Ian Read and ex-CFO Frank D’Amelio have publicly thrown their support behind current CEO Albert Bourla, distancing themselves from the activist campaign led by Starboard Value. Their statement comes as Starboard, known for its aggressive tactics, has built a significant stake in Pfizer, prompting a showdown with the company’s board.
Pfizer, facing declining share price and strategic criticism, is under pressure from activist investor Starboard Value, which has acquired a $1 billion stake in the company. Starboard is pushing for a more focused development strategy and deeper cost cuts, aiming to turn around the pharmaceutical giant’s fortunes.
Pfizer’s experimental drug, ponsegromab, has shown positive results in treating cancer cachexia, a life-threatening condition that causes weight loss in cancer patients. The drug could become the first approved treatment for this condition in the US, potentially saving many lives. Meanwhile, Moderna and Merck are also making strides in cancer treatment with their experimental cancer vaccine and immunotherapy drug combination. Mainz Biomed is advancing early cancer detection with its ColoAlert colorectal cancer test, emphasizing the importance of early screening.
Valneva and Pfizer announced positive immunogenicity and safety data from their Phase 2 study of a second booster dose for their Lyme disease vaccine candidate, VLA15. The data shows a robust immune response and a favorable safety profile, with the second booster providing similar benefits to the first. The companies are currently conducting two Phase 3 trials with the goal of submitting marketing applications to the FDA and EMA in 2026.
