Biotech investors who thought Sorrento (NASDAQ:SRNE) or Inovio (NASDAQ:INO) would beat Moderna (NASDAQ:MRNA) or BioNTech (NASDAQ:BNTX) paid a steep price. The former two firms failed to deliver on a COVID-19 vaccine. Instead, MRNA and BNTX are still rising because they have a vaccine on the market.
Both firms have more upside ahead because the need for COVID-19 vaccine booster shots will sustain revenue growth. Plus, the world is still in need of more vaccines. AstraZeneca (NASDAQ:AZN) may have the least expensive vaccine on the market. It will have the widest distribution globally. In the developed countries, AZN’s blood clot risks are a concern. It happens more frequently than that offered by Johnson & Johnson (NYSE:JNJ), BioNTech, and Moderna.
The higher safety profile gives BNTX and MRNA a strong moat. Valuations are still lofty but are justified. The market is not recognizing the future growth in the mRNA platform. After COVID-19 vaccines, the companies will expand their product line to cover vaccines for other diseases.
Vaccinations in the cancer space are probable, too, over the next few years. The addressable market is widening, increasing the revenue potential for the two firms.
Should BNTX or MRNA stock dip, consider starting a small position in them and building an allocation throughout the year.
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