Rumors that the U.S. government will stop buying Covid-19 vaccines, therapies, and tests this fall sent
Moderna (MRNA) stock lower. BioNTech (BNTX), which relies exclusively on this market, is more
vulnerable. Moderna has a pipeline of vaccines for other diseases.
Moderna has a pipeline of vaccines for multiple covid variants. Chances are high that the government
will want a vaccine specific to omicron on the market. In addition, Moderna has several flu vaccines in
development. As the world pivots its attention back to the seasonal flu, MRNA stock could rally again.
MRNA stock peaked at around $200 in early August. Trading at below a 5 times P/E, the markets more
than discounted Moderna’s weaker Covid vaccine sales. The company is nowhere near as troubled as
Novavax (NVAX).
Novavax received the Food and Drug Administration’s approval of its protein-based vaccine recently.
Nearly two years after the pandemic, the approval is too late. Demand for any Covid vaccine is falling
rapidly. Novavax will have trouble selling enough units.
Short sellers sense that Novavax will continue falling. The short float is 21%.
Investors should consider having a small position in the Covid vaccine and therapeutics space. The virus
will not go away. Countries will need Pfizer’s (PFE) antiviral therapy. They will need to consider an
annual vaccine strategy to lower the risks of long-Covid.
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