The ongoing horse race for a COVID-19 vaccine seems to be coming into the final turn, as we have multiple vaccine candidates closing in on the finish. Now, Pfizer (NYSE:PFE) recently landed an extra 1% in its share price in pre-market trading thanks to moves between itself and partner BioNTech (NASDAQ:BNTX) to apply for emergency use authorization from the FDA for its COVID-19 vaccine candidate.
A Heavy Hitter in Vaccinations
So far, the Pfizer / BioNTech vaccine candidate has delivered top-notch results. Not only has it delivered testing with comparatively few snags, it's also delivered a finished product said to be 95% effective against the disease. That's certainly enough to start the process rolling, and if concluded successfully, will give Pfizer and BioNTech the lead in the market.
The process, meanwhile, is a cumbersome one, though at least somewhat out of necessity. It's slated to take a minimum of several weeks, and the initial meeting of the advisory committee that will review the vaccine isn't set to meet until “early December,” reports note. Though the process itself should move fairly quickly, meaning that the first doses could start hitting human veins within about a month's time.
With the final analysis concluded, Pfizer / BioNTech's vaccine candidate revealed that there were 170 confirmed COVID-19 infections among the over-43,000 participants in the last study. Meanwhile, there were 162 cases in the placebo group, which puts the vaccine at about 95% efficacy, which is much better than what's currently available.
Competition Closing In
The Pfizer / BioNTech vaccine looks like it will have first-mover advantage, at least for a little while, but this advantage comes with several caveats that will ultimately limit its scope and effectiveness. For one, it faces negative perception right out of the gate on some fronts, as the vaccine—in a similar fashion to Moderna's (NASDAQ:MRNA)—uses messenger RNA (mRNA) as one of its primary components. The use of mRNA in vaccines is a comparatively new practice, and as such, has some very concerned about long-term side effects.
Moreover, the Pfizer / BioNTech entry has some very demanding storage requirements. While Moderna's vaccine can be stored in freezing conditions—it needs -4 degrees Fahrenheit conditions—Pfizer / BioNTech's vaccine requires conditions that aren't found anywhere on Earth, requiring storage temperatures of -94 degrees Fahrenheit to survive.
What's more, the Pfizer / BioNTech vaccine likely won't be alone in the market for long. We've already mentioned Moderna, but there are candidates from AstraZeneca (LON:AZN) and even Johnson & Johnson (NYSE:JNJ) coming up not too far behind. The first-mover advantage the partnership will enjoy is likely to prove short-lived, and with production issues weighing on the process, can only be enjoyed in a limited capacity anyway.
Not Just a One-Trick Pony
The good news here is that these new developments really only help Pfizer and BioNTech. Pfizer already had a range of pharmaceuticals in play, and the addition of a coronavirus vaccine can really only help. Given that there are already 11.71 million Americans infected with the disease at last report, there are still over 300 million who never have been. That's going to make for a fairly decent-sized market. Given further that the US government has already agreed, back in July, to buy 100 million doses from Pfizer, it's clear that the company has a market already sewn up.
Our latest research considers Pfizer to be not only a “trending stock” but also part of the “top beat-the-market stocks” list, which makes it that much more impressive. While the analyst consensus considers this a “hold”, the ratio is on the rise, approaching that seen six months ago at seven “hold” and five “buy”. Today the company is at nine “hold” and five “buy,” and the price target is $40 even compared to $41.39 six months ago.
There's a lot to like in Pfizer right now, and a way to beat the disease that has plagued the world for much of the last year certainly doesn't hurt. That's just the start of the list, however, and for those who want a stable addition to their portfolio, that features a comparatively solid dividend and a close connection to the nearly-indispensable healthcare market, Pfizer may be just the pick you'll need.
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