Reports on Monday suggested vaccine makers Pfizer (PFE) with BioNTech (BNTX) and Moderna (MRNA) raised the prices of their Covid shots, leading BioNTech stock to pop.
The report comes a week ahead of BioNTech’s second-quarter earnings release. Then, analysts polled by FactSet expect the company to report adjusted earnings of $8.94 per share and almost $3.86 billion in sales. Earnings would reverse from a year-earlier loss and sales would skyrocket by a quadruple-digit percentage.
The bullish view also follows sobering news. The Centers for Disease Control and Prevention recently revised its Covid guidance, suggesting people in most states wear masks indoors. A contagious variant known as delta accounted for about three-quarters of U.S. cases as of mid-July.
Breakthrough infections in vaccinated people are also on the rise. A CDC study following an outbreak in Massachusetts tracked 469 Covid-19 cases among residents between July 3-17. Close to three-quarters of those, 74%, were among vaccine recipients.
But on the stock market today, BioNTech stock jumped 3.6% to 340.21 ahead of its second-quarter report next Monday morning.
BioNTech Stock Pops Ahead Of Report
The company has just one product on the market: its Pfizer-partnered Covid vaccine. On Monday, the Financial Times reported Pfizer with BioNTech and Moderna had raised the prices of their Covid vaccines in new contracts. Meanwhile, another report from The Wall Street Journal suggested the Food and Drug Administration is under pressure to fully approve the two shots.
During the period ended June 30, Pfizer reported $7.8 billion in sales of the vaccine. This year, Pfizer expects $33.5 billion in Covid vaccine sales. That number could change based on new contracts and possible booster shots.
Still, vaccine resistance remained at a standstill in the recent IBD/TIPP Poll. More than a quarter, 26%, of people surveyed don’t plan to become vaccinated — soon or at all.
Nearly half of those who never plan to receive a Covid shot, 46%, say they are concerned about possible side effects. Meanwhile, 23% say they don’t generally trust vaccines, 18% don’t trust the government and 7% don’t expect to contract Covid or need the vaccine. The remaining 7% didn’t specify a reason. As it stands, vaccine resistance won’t hurt sales of the vaccines, nor BioNTech stock. Individuals aren’t purchasing the shots; governments are.
Each of the Covid shots authorized in the U.S. has been tied to a side effect. Messenger RNA shots from Pfizer/BioNTech and Moderna (MRNA) heighten the risk of heart inflammation in some people. The U.S. paused the use of the Johnson & Johnson (JNJ) vaccine due to the risk of blood clots. It’s also been tied to a rare immune system disorder.
But that hasn’t deterred BioNTech stock investors. This year alone, shares have rocketed more than 317% as of Monday’s close.
Highly Rated Biotech Stock
BioNTech stock has a best-possible Relative Strength Rating of 99, according to IBD Digital. This puts shares in the top 1% of all stocks in terms of 12-month performance.
Shares also have a strong Composite Rating of 95. This means BioNTech stock trades in the leading 5% of all stocks in terms of fundamental and technical measures.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
