When BioNTech SE (NASDAQ:BNTX) stock corrected to close to $50 in the summer, investors who bought it then are faring well. The stock is set to trade at new highs if its Covid vaccine developer, Pfizer (NYSE:PFE), gets the product to market.
In an open letter from Pfizer’s CEO, Albert Bourla said that the company must first prove the vaccine’s effectiveness. Once it establishes its ability to prevent the Covid-19 disease in most of the subjects in the study, only then might it seek approval.
Proving the vaccine’s safety is critical to convincing people to consider treatment.
Novavax (NASDAQ:NVAX) and Moderna (NASDAQ:MRNA) also have ongoing studies aiming to demonstrate the same two things: vaccine safety and efficacy. Both firms already received government funding and orders ahead of the manufacture of the vaccine.
Countries need the product on market to protect their citizens. Once administered, society may resume life the way it was and their economies will rebound. Until then, they will have to wait.
Covid-19 vaccine investors who patiently wait for approval will get rewarded again. The stock price in these biotech firms is already up this year. The upside will continue as markets realize people will need to get the vaccine once a year. The recurring revenue will make the stock look inexpensive at current levels.
