Things are getting interesting in the COVID-19 vaccine space. Pharmaceutical firms are fighting against the global pandemic. Big US pharma’s who are part of this vaccine manufacturing drive have their stocks in the gold mine.
Last Monday on August 23, shares of Pfizer (PFE) soared massively following the formal approval of its vaccine by the U.S. Food and Drug Administration. You rarely see a market that’s this straightforward, but anything with any cyclicality roared on the Pfizer story. This news almost took Pfizer stock to its all-time high.
Pfizer-BioNTech vaccine stands at the top of the table among other companies. The Pfizer-BioNTech vaccine is also the first COVID-19 vaccine to be fully approved by the FDA.
With the first vaccine approval, other companies also got in line with the FDA approval. Moderna also got approved.
So, there are a lot of upsides for vaccine stocks. For investors, this is a golden opportunity to avail. Before we kick off with the vaccine stocks. We’d like to clear that Pfizer and BioNTech are two different companies that have collaborated on this vaccine project.
Pfizer shares really took off last week when the news of FDA approval was announced. What does this vaccine approval mean for Pfizer investors?
The recent reaction of investors to the vaccine approval was obvious. The market reacts favorably to positive news, especially these days when it’s related to the COVID-19 pandemic. But there’s much more to it.
The vaccine approval will provide legal backing for the vaccine mandates a lot of companies and government organizations are planning to implement. Moreover, it’ll help get meaningful results on making people more comfortable getting the vaccine.
The COVID vaccine has been a massive boon to Pfizer’s business. The firm expects $33.5 billion in revenue from Covid-19 vaccines this year. Pfizer stock has already touched the $50 mark on August 2021. It could break that once again following more good news.
And, the company has announced one. Pfizer isacquiringthe cancer drug company Trillium Therapeutics for $18.50 per share, at a compound value of $2.3 billion. Pfizer invested nearly $25 million in Trillium in 2020, so they are enhancing their portfolio.
Before we begin with BNTX stock, let’s get this clear. COVID vaccine stocks are here to last much longer than expected. Analysts are counting on a long tail for COVID vaccines.
One of the biggest mistakes investors make is seeing a stock go up and thinking they missed the boat. Guess what you haven’t. You will always have time to get into the market, but the best is to do it at the right time. That’s why it’s important to consider a stock like BioNTech.
So far, BNTX stock has rallied up to 962% since the beginning of 2020. But a lot has happened since. The company’s future might be even brighter than its recent past. If so, there could be a lot of gains left for shareholders and potential investors.
Over the past three weeks, BioNTech shares have fallen. There’s a lot of debate going on in the US on booster doses. BioNTech along with Pfizer can make easy money via the supply of boosters.
Moderna (MRNA) is really making some pump as the US Centers for Disease Control and Prevention weighs in on if America should get the third dose. Currently, the company estimates about $19 billion in revenue from the shots in 2021. And, if the US government authorizes the booster shots, Moderna will really add a huge chunk of money to its revenue.
Earlier in August this year, Moderna stock crossed the $410 mark. At the moment, it trades around $386. Analysts are expecting Moderna to pump either way, as it depends on the government regarding the third shot.
In the long-term, Moderna looks like a solid vaccine stock and it will continue its momentum. Moreover, the company has also applied for full FDA approval.
So, Moderna’s vaccine is expected to become the second COVID vaccine that the FDA would approve.
The company expects to advance its cytomegalovirus (CMV) vaccine candidate into late-stage testing in 2021. So, for Moderna, there is much going on at the moment.
Johnson & Johnson (JNJ)
Johnson & Johnson’s vaccine was the third to secure U.S. authorization for emergency use. Unlike the Pfizer-BioNTech and Moderna vaccines, JNJ’s vaccine takes full effect after only a single dose.
Johnson & Johnson’s vaccine has had issues, and it has faced some backlash. The company had some manufacturing problems at a contractor’s facility, and concerns about blood clotting. This issue caused a temporary halt in the U.S. of the vaccine’s administration.
However, this hasn’t been a big concern for the Johnson & Johnson investors. The company is selling its COVID-19 vaccine at cost during the pandemic, meaning that it doesn’t much affect Johnson & Johnson’s financial performance.
In contrast, Johnson & Johnson surpassed Wall Street’s second-quarter forecasts and JNJ stock topped a buy point.
Johnson & Johnson is so big that its success doesn’t depend on one product. Analysts believe JNJ stock looks good in the long term regardless of vaccine issues. Although there are still questions being asked regarding its vaccine.
Novavax (NVAX) stock hasn’t performed the way they accepted it for a vaccine stock. Rather, it has reacted abruptly. Novavax hasn’t yet won any authorization or approval for its COVID-19 vaccine. So, it makes some sense why the stock has been up and down in 2021 so far.
The company plans to file for regulatory authorizations in the U.S., U.K., and Europe in the third quarter of 2021. Recently, the company again delayed its timeline for seeking U.S. authorization for its vaccine. The company expects to become a major distributor to lower and middle-income countries this year.
Following a late-stage clinical study conducted in the U.S. and Mexico, Novavax reported an overall efficacy of 90.4% for its experimental coronavirus vaccine.
The COVID-19 keeps on reappearing with new variants every time. Novavax can enter the vaccine game late, but it could still be a big winner in the COVID-19 vaccine market.