China Halts Imports of Pfizer (PFE) Drug Over Paperwork Issue

NEW YORK (TheStreet) -- China has halted imports of Pfizer's (PFE) drug Diflucan following a paperwork "glitch."

According to Reuters, the drug is manufactured in a factory in France that missed a deadline to file a supplementary application. The company said there are no concerns over the safety or quality of the Diflucan from the factory, according to a Wall Street Journal report. and that it is working with Chinese regulatory authorities to resolve the issue.

Shares of Pfizer gained 0.1% to $30.70 on Tuesday.

TheStreet Ratings team rates Pfizer as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate PFIZER INC (PFE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PFE has a quick ratio of 2.21, which demonstrates the ability of the company to cover short-term liquidity needs.
  • PFIZER INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PFIZER INC increased its bottom line by earning $1.20 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.18 versus $1.20).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has increased to $5,908.00 million or 18.08% when compared to the same quarter last year. Despite an increase in cash flow, PFIZER INC's cash flow growth rate is still lower than the industry average growth rate of 29.46%.
  • You can view the full analysis from the report here: PFE Ratings Report

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