ADVFN Logo
Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

Biotech Shares Benefit from Vaccine Demand

Share On Facebook
share on Linkedin
Print

The Food and Drug Administration (FDA) will be very busy in the third week of December after approving the emergency use of the COVID-19 vaccine produced by Pfizer and BioNTech. While several companies will hear if their drugs are suitable for the public, Moderna’s COVID-19 vaccine will be on the top of the list.

©

On December 17, Moderna will face the FDA’s Center for Biologics Evaluation and Research’s Vaccines and Related Biological Products Advisory Committee. The group will determine if the COVID-19 vaccine produced by Moderna is suitable for the public. This same committee gave the go-ahead to Pfizer in the prior week. The main difference between the two vaccines (Moderna and Pfizer) is that the Moderna vaccine does not require the same cold storage the Pfizer vaccine needs to remain stable. Moderna’s approval is after Pfizers because the company took money from the U.S. Government as part of operation warp speed, and therefore had to complete additional testing.

What Kind of Vaccine is the Moderna and Pfizer Vaccine

The Moderna vaccine generates a robust immune response reported in clinical data, differs from many standard vaccines. Both her Moderna and Pfizer vaccines are made of messenger RNA (MRNA), meaning it helps your body build immunity without actually exposing you to the virus. This vaccine is a relatively new type of vaccine. Historically, vaccines took either small pieces of a live virus or a dead virus and injected it into a human body, creating an immune response. Your body would then be ready for the real virus if you become exposed to the virus in the future.  Some people will not be able to create this response. Pfizer’s warnings was that immunocompromised person by not getting the full immune response to the vaccine.

 

The Pfizer Vaccine is Out for Delivery

The logistics and delivery of the vaccine are across the U.S. will be crucial for and reasonable response to the pandemic. The spread of the virus is blazing out of control to the extent that New York City is closing down indoor dining again.

The logistics will depend on the capabilities of FedEx and the United Parcel Service. Both companies will play crucial roles in distributing the vaccine. The movement of each vaccine is fragile and requires special treatment. Shipments will get priority access at the airport. If a plane with vaccines is coming in for a landing, other passenger planes will have to circle and wait their turn.

FedEx and UPS are ready for the superior logistics required in moving the Pfizer vaccine that requires freezing temperatures to keep the vaccine stable. Unlike the other vaccine candidates, Pfizer’s vaccine is especially difficult to store and ship. It needs to be kept super cold, like minus 94 degrees Fahrenheit, in a sealed box, with dry ice.  The type shipping device is called a thermal shipper and contains up to 5,000 doses of the vaccine. Both logistics companies use thermal shippers received from Pfizer to send vaccines to states and cities across the United States. Company leadership has assured a Senate transportation subcommittee that they could handle the influx of shipments.

 

No Proof that The Vaccine Prevents Infection

There are millions of doses of the Pfizer and Moderna vaccine poised to ship across the globe. One of the issues that is is unknown is whether the vaccine prevents infection. Both Moderna and Pfizer have 95% efficacy is preventing people from getting sick from the virus. The human body recognizes the spiked protein on the virus once a person is vaccinated. The spiked protein is what the coronavirus uses to enter a human cell. Once vaccinated, the spiked protein is rejected and eventually dies off. Unfortunately, the virus can linger and get passed on. The vaccine will protect a perform from getting sick but might not protect someone from getting infected by the virus and pass on the virus.

 

Getting American’s to Take the Vaccine

The upshot is that getting the vaccine will protect people and allow them to go back to their everyday daily lives. To get people to take the vaccine, the Trump administration is rolling out a $250 million public education campaign to encourage Americans to take the coronavirus vaccine.

This effort will not be easy since the virus was politicized in the general election. At least half the population has doubt and mistrust of government programs amid deep political divisions created in part by a president. During the past 9-months, the President has spent much of his time belittling government scientists, promoting ineffective treatments and dismissing the pandemic’s seriousness. The vaccine will protect millions of people from getting sick, but people will likely need to continue to wear masks and the social distance to prevent the spread of the virus.

 

Shares have Ripped

The demand for a vaccine has led to a surge in the price of the biotech stocks that have focused and successfully created a vaccine. Moderna shares are up a whopping 70% year to date in 2020. This has not been the case for the Pfizer shares trading. The stock price is up less than 5% year to date in 2020 and has underperformed the broader markets.

 

The Bottom Line

The demand for a vaccine is high and will likely continue to drive biotech stocks’ shares into 2021. The U.S. Food and Drug Administration is on the verge of approving the Moderna vaccine for emergency use in the Pfizer approval wake. The RNA messenger vaccines have proven to be effective and could provide a new way of generating a vaccine for the foreseeable future. This sector should continue to benefit from innovation as the vaccine is shipped to destinations across the globe.

Click Here to register for free on Investors Hub

This area of the investorshub.advfn.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of Investors Hub. Investors Hub does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at Investors Hub is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by investorshub.advfn.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

Comments are closed