HomeInvesting NewsPfizer Stock and Biontech Drop on Moderna Supply Concerns as the Leading...

Pfizer Stock and Biontech Drop on Moderna Supply Concerns as the Leading Distribution of a New Booster Shot

Published on

Pfizer stock price was at $44.72, a slight drop on Wednesday’s pre-market trading as of 08:20 AM EDT.

More than 25 million doses of the new COVID-19 booster shots have been made available by the U.S. government, largely from Pfizer (NYSE:PFE)/BioNTech (BNTX), while Moderna (NASDAQ:MRNA) is increasing manufacturing.

The government supplies of Moderna’s (MRNA) revised vaccination were restricted, according to top drugstore retailers Walgreens Boots Alliance Inc. (WBA) and CVS Health Corp. (CVS) on Tuesday. Both businesses said there were no supply problems for the new Pfizer/BioNTech booster and that they were working with the government to obtain more Moderna (MRNA) shots.

The company’s upgraded booster shots were produced by contract manufacturer Catalent Inc. (CTLT) at a facility in Bloomington, Indiana, which is not currently allowed to create the updated doses, according to a statement from the FDA on Tuesday. According to the regulator, Moderna (MRNA) asked the FDA to approve the batches in response to the supply problems.

In light of “strong demand in some sections of the country,” a Moderna (MRNA) representative said on Tuesday that the business is coordinating closely with the American government to ship “large numbers” of upgraded boosters.

The company is on pace to provide 70 million doses of revised booster shots by the end of the year, according to Moderna (NASDAQ:MRNA), which anticipates that the supply issues will be rectified in the coming days.

Following regulatory approval of the shots intended to combat the original COVID-19 strain and BA.4 and BA.5 Omicron subvariants, the U.S. began rolling out 175 million doses of upgraded boosters at the beginning of this month.

Pfizer, Biontech, Moderna, Novavax To Gain In Passing Of New Law

Pfizer Stock price projection 

After U.S. President Joe Biden stated that the COVID-19 epidemic was gone in the country in an interview with “60 Minutes” on CBS News over the weekend, the stocks of firms that produce COVID-19 vaccinations and medications fell on Monday.

Stock prices for BioNTech, Moderna, and Novavax fell 8.6%, 7.1%, and 6.5%, respectively. Pfizer, a partner of BioNTech, decreased by roughly 1.3%.

Moderna, BioNTech, and Novavax stocks all fell because once the pandemic is over, their sales and profitability will plummet. This is due to the fact that their sole top-line drivers were COVID-related vaccinations and products. BioNTech and Moderna stocks have increased by about 300% and 400%, respectively, since the pandemic began in March 2020.

Biden’s remark actually had a negative impact on Pfizer stock as well because Paxlovid, an antiviral drug and COVID-19 vaccine, generates nearly half of the company’s sales. For the following few quarters, Pfizer and Moderna anticipated that their main sources of revenue would come from the “updated” boosters. The demand for COVID-19 vaccinations and other medications will fall once the epidemic stops, which will negatively impact these companies’ sales and profitability.

To support their long-term growth, the corporations will eventually need to identify new top-line drivers. Sales of vaccines and medications have resulted in significant inflows of cash for Moderna, Pfizer, and BioNTech. To make up for lost sales of COVID products, they can use the money for more research and successfully create other items.

More on the Zack Analyst blog at Yahoo Finance.

Featured Image – Megapixl © Bizoon 

Please See Disclaimer

Latest News

Rivian Stock: Explanation of this Week’s 19.1% Drop

Rivian Stock (NASDAQ:RIVN) S&P Global Market Intelligence data shows that Rivian stock dropped as high...

Friday’s 5% Tesla Stock Drop and Its Cause

Tesla Stock (NASDAQ:TSLA) The news that almost 1.1 million Tesla (NASDAQ:TSLA) vehicles were recalled swiftly...

The Reason Today’s Target Stock Fell Again

Target Stock (NYSE:TGT) Target stock continued to struggle during the trading week on Friday. This...

Here’s Why ChargePoint Stock Dropped Today

ChargePoint Stock (NYSE:CHPT) The ChargePoint stock fell today, along with several other riskier securities. At...

More like this

Apple Stock is the Last One Standing In Tech

Apple stock (NASDAQ:AAPL) is maintaining its strength despite a general downward trend in the...

Bitcoin Whale Transfers 1,678 Bitcoin Stock From Coinbase

Recently, a Bitcoin (BTC-USD) whale just sent off for trading $31,974,278 worth of Bitcoin...

Fubo Stock Rises as a Wedbush Analyst Upgrades the Company’s Ratings.

Following a recommendation to buy from Wedbush analyst Michael Pachter, FUBO stock (NYSE:FUBO) climbed...

Why Is FedEx Stock Rising?

FedEx Stock (NYSE:FDX) is increasing in value on Thursday afternoon following the company's announcement...

What Happened to the SPY Stock After the Fed’s Aggressive Rake Hike?

The SPY stock (NYSEARCA:SPY) has been in a slump since failing to reclaim the...

Analysts Think FedEx Corp Must Slash Costs as Investor Patience Wanes

Wall Street analysts said on Friday that FedEx Corp (NYSE:FDX) Corp's new chief executive...