Keep an eye on vaccine stocks again.
After a brief pullback, Moderna (MRNA), BioNTech (BNTX), and Pfizer (PFE) could see higher highs, near-term. All after the US FDA approved vaccine boosters for the immunocompromised, and as the virus continues to make its rounds around the world.
With regards to the virus, as of August 11, the U.S. seven-day average of daily new cases came in at 113,357, according to the US Centers for Disease Control and Prevention (CDC). That number is up 24.3% week over week, and about 876% from June 2021.
Plus, according to CNN, more than 98% of US residents live in areas where there’s a “high” or “substantial” risk of transmission.
In addition, “the State Department is telling citizens to avoid 10 of the [European] continent’s countries, and the European Union is considering shutting its doors once again to Americans, as U.S. cases soar,” according to The Washington Post.
Also, the US FDA is hoping to help, approving boosters for the immunocompromised.
In fact, according to USA Today, “The less than 3% of Americans who are severely immunocompromised should be able to get an extra dose of the Pfizer or Moderna vaccine. People who are on medications or have diseases that suppress their immune system may not have gotten adequate protection from their earlier doses of vaccine and are more likely to mount a response to an additional dose, the Food and Drug Administration determined.”
With all of that in mind, we’d use any signs of weakness in vaccine stocks, as a reason to buy – especially with these companies raking in billions of dollars.
According to Reuters, “Analysts have forecast revenue of over $6.6 billion for the Pfizer/BioNTech shot and $7.6 billion for Moderna in 2023, mostly from booster sales. They eventually see the annual market settling at around $5 billion or higher, with additional drugmakers competing for those sales.”
“The vaccine makers say that evidence of waning antibody levels in vaccinated people after six months, as well as an increasing rate of breakthrough infections in countries hit by the Delta variant, support the need for booster shots,” they added.
The post Use Weakness in Vaccine Stocks as an Opportunity – Here’s Why. appeared first on Morningology.
