Why Aren't Moderna and Pfizer's Stocks Soaring After FDA Approval?

 David.Mitchell
 
  David.Mitchell
 
Follow  Message
 
 
 
David Mitchell is a seasoned professional with over two decades of experience in the world of finance and investment. With a strong passion for the biotech industry and a keen eye for market trends, David has established himself as a trusted advisor for investors seeking opportunities in the ever-evolving biotechnology sector.
 

•  Sep 25 2023
 

stocks on the run

Newly approved by the FDA, Moderna and Pfizer's updated COVID vaccines are poised to reach global markets. Anticipated profits for these companies raise questions about their stock performance. Interestingly, this concern extends beyond just Moderna and Biontech, both of which rely heavily on their vaccines as their primary commercial product.

Moderna: What's Next for Investors?

Moderna initially surged by 20% in early August when the new COVID wave emerged. However, subsequent to this rise, its stock experienced a minor dip before climbing back to the same price point following the approval of the updated product for market distribution. Despite these fluctuations, it's worth noting that Moderna's stock is currently trading at its lowest range since mid-2021, when the vaccine's effectiveness was first demonstrated.

Moderna has revised its 2023 vaccine revenue projections from $5 billion to a promising $6-8 billion. However, what truly captures the attention of the company's investors are its forthcoming RNA-based drugs and vaccines, anticipated to provide consistent, enduring revenue streams. Currently, the COVID vaccine serves as a lucrative cash generator, earmarked to fund the advancement of these innovative products.

BioNTech: A Small Slice of the Market

At the onset of the pandemic wave, Biontech's stock surged by 25%, but subsequently experienced a decline. Interestingly, unlike Moderna, the approval of their updated vaccine didn't trigger a notable resurgence. The company currently holds a market value of $27 billion. The distinction between Biontech and Moderna lies in the revenue-sharing arrangement with Pfizer. While they have a share of the global vaccine market – the largest in the world – Biontech's slice is proportionally smaller. Furthermore, Biontech is actively progressing in the development of additional RNA-based products, and both companies are well-financed for these ambitious endeavors.

Pfizer: Returning to the Pre-Vaccine Era

When the August wave began, Pfizer's stock enjoyed a 16% surge, but it has since retraced below its pre-wave levels. Pfizer's stock volatility isn't solely tied to the COVID-19 pandemic. On October 19, the European competition authority will decide on the approval of Pfizer's massive $43 billion acquisition deal with cancer company Seagen, potentially triggering a thorough investigation.

Within the COVID-19 sector, Pfizer investors are eyeing a relatively stable market for the drug paclovid, with the company anticipating around $8 billion in revenue from it. Pfizer also has plans to introduce non-COVID related products, yet its stock has returned to its pre-2021 event pricing.

Novavax: The Belated Arrival at the Party

Novavax stands out as an underperformer among the COVID-19 vaccine contenders. On one hand, it surprised the market by reaching the finish line in the vaccine development race, despite competing against larger and better-funded rivals, thanks to its unique mechanism. However, it consistently lagged behind in other aspects. The company grappled with production issues, and by the time they were resolved, the overall interest in the field had started to decline.

Novavax saw a modest uptick at the start of August following the release of positive vaccine efficacy results against new variants. However, it subsequently declined as it became evident that the company had arrived late to the scene.

stocks on the run

Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.

Read Next

Real-time stock market updates

Expert stock analysis

Investment strategies

Top stock recommendations

Trading signals and opportunities

Log In

Sign Up

Contact Us

Terms of use

Privacy Policy