24 C
Munich
Tuesday, July 27, 2021

Vaccine Stocks Already Got Their Booster

Must read

It’s Time to Start Requiring Covid Vaccines

On Thursday, Kay Ivey, the unimpeachably conservative governor of a deep red state, treated her...

Will the Olympics ever truly welcome nonbinary athletes?

This story was originally...

GE and Raytheon Aren’t Yet Flying on All Engines

Jet engines are roaring back to life, but shouldn’t yet be declared ready for takeoff. ...

Canada at the Tokyo Olympics: Who’s competing Tuesday night, Wednesday morning – National

Canadian athletes will be busy competing in several events at the Tokyo Olympics Wednesday, including rowers and swimmers looking to come out on top...

How long will the world need continuing Covid-19 vaccination campaigns? The answer is unclear. Meanwhile, enthusiastic vaccine stock investors aren’t leaving themselves much wiggle room.

Pfizer and its partner BioNTech said Thursday that they will seek emergency authorization from U.S. regulators to distribute a booster shot of their vaccine. The companies also said they are developing an updated vaccine to combat against the fast-spreading Delta variant and will begin clinical trials next month. BioNTech shares rose on Friday morning, while shares of top vaccine developer Moderna fell slightly.

That is good news for shareholders on its face—a need for more vaccines translates into additional revenue, after all. Observers shouldn’t be surprised if Moderna makes a similar announcement about booster shots soon. For investors, though, the picture is far murkier.

For their part, U.S. health regulators sounded a cautious tone. They said they are working “to consider whether or when a booster might be necessary” in response. For instance, Covid-19 hospitalizations are rising in areas of the U.S. with low vaccination rates, but nearly all hospitalizations have occurred in unvaccinated patients.

While it is reassuring that drugmakers are prepared should today’s public-health situation worsen, the booster dilemma raises serious questions about the bull market in vaccine stocks. BioNTech and Moderna boast a combined market value of about $140 billion, on par with the value of Amgen , a diversified drugmaker that expects to book roughly $26 billion in sales this year.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

It’s Time to Start Requiring Covid Vaccines

On Thursday, Kay Ivey, the unimpeachably conservative governor of a deep red state, treated her...

Will the Olympics ever truly welcome nonbinary athletes?

This story was originally...

GE and Raytheon Aren’t Yet Flying on All Engines

Jet engines are roaring back to life, but shouldn’t yet be declared ready for takeoff. ...

Canada at the Tokyo Olympics: Who’s competing Tuesday night, Wednesday morning – National

Canadian athletes will be busy competing in several events at the Tokyo Olympics Wednesday, including rowers and swimmers looking to come out on top...