Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Here's the Coronavirus Vaccine Maker That's Most Likely to Blow Past Pfizer and Moderna

By Keith Speights - Nov 20, 2020 at 6:09AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It lags a little behind the leaders for now, but that could soon change.

We've seen over the past 11 days that Pfizer and Moderna are, without question, the clear leaders in the coronavirus vaccine race. Last week, Pfizer and its partner BioNTech announced great efficacy results for their COVID-19 vaccine candidate BNT162b2. Earlier this week, Moderna followed up with its own fantastic efficacy results for experimental coronavirus vaccine mRNA-1273.

These companies are on track to soon file for U.S. emergency use authorization (EUA). And their chances of winning EUA appear to be quite good. Both BNT162b2 and mRNA-1273 could become available to the first wave of Americans by the end of the year.

While Pfizer and Moderna are the leaders now, that doesn't mean they'll maintain the position indefinitely. Here's the coronavirus vaccine maker that's most likely to blow past both of these drugmakers.

Gloved hand picking up a COVID-19 vaccine bottle from a line of identical bottles.

Image source: Getty Images.

Running close behind

Two companies are running close behind Pfizer and Moderna. AstraZeneca ( AZN -1.02% ) and Johnson & Johnson ( JNJ 1.46% ) are also evaluating coronavirus vaccine candidates in late-stage testing in the U.S. 

AstraZeneca expects to announce its late-stage results by the end of 2020. The big drugmaker likely could have reported those results even sooner, but its U.S. study was delayed for a few weeks after a participant in the company's U.K. study of its COVID-19 vaccine experienced an unexplained illness. AstraZeneca's U.S. clinical trial has since resumed.

Johnson & Johnson also had a temporary pause for its late-stage coronavirus vaccine study due to a potential safety issue. An investigation determined that the issue wasn't related to J&J's experimental vaccine, though, and the study moved forward. J&J hasn't indicated when it expects to announce initial results from its late-stage study, although sometime in early 2021 seems likely.

The great efficacy results for Pfizer and Moderna could bode well for both AstraZeneca and J&J. Pfizer's and Moderna's experimental vaccines use modified messenger RNA (mRNA) to instruct the ribosomes in cells to produce proteins that mirror the spike protein on the surface of the novel coronavirus that causes COVID-19. AstraZeneca and J&J use a different approach, where adenoviruses (which are a leading cause of the common cold) deliver DNA that contains instructions for building a copy of the coronavirus spike protein.

In theory, at least, the adenovirus DNA approach could deliver similar efficacy as the mRNA approach used by Pfizer and Moderna. It's too soon to know if that will be the case, though. J&J has stated that it's modeling for 70% efficacy, but thinks the actual level could be higher.

A big sticking point

Which of these coronavirus vaccine makers is most likely to vault ahead of Pfizer and Moderna? I'd go with Johnson & Johnson.

The COVID-19 vaccines developed by Pfizer, Moderna, and AstraZeneca have at least one common denominator: They all require two doses. To be fully vaccinated, individuals must receive the first dose and then get a second dose several weeks later. J&J's coronavirus vaccine candidate, though, requires only one dose.

This could give J&J a significant competitive advantage over its rivals. A single-dose vaccine would have a lower cost than a two-dose regimen. People would also be more likely to want to receive a vaccine that they only have to take once. 

Johnson & Johnson also won't have the ultra-cold storage requirements that Pfizer's vaccine has. Its COVID-19 vaccine can remain stable for up to two years at around minus four degrees Fahrenheit and for up to three months at temperatures between around 35 degrees and 46 degrees Fahrenheit. 

In addition, J&J beats Moderna when it comes to production capacity. Moderna has stated that it will be able to make around 500 million doses of mRNA-1273 next year, although the biotech says that it could "possibly" up that to 1 billion doses. J&J is on track to produce more than 1 billion doses per year.

One thing you shouldn't overlook

I definitely think it's possible that Johnson & Johnson could be more successful with its coronavirus vaccine than Pfizer and Moderna will be with their vaccines. However, note that I never said that the big healthcare stock would outperform either of these two other drug stocks.

My hunch is that the biggest winner of the three in terms of stock performance will be Moderna. Why? It's the smallest of the group. It takes more to move the needle for giant companies like Pfizer and J&J than it does for relatively smaller biotechs like Moderna. The most successful coronavirus vaccine maker on one front might not be (and probably won't be) the most successful on another front. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Johnson & Johnson Stock Quote
Johnson & Johnson
$159.38 (1.46%) $2.29
AstraZeneca PLC Stock Quote
AstraZeneca PLC
$54.23 (-1.02%) $0.56
Pfizer Inc. Stock Quote
Pfizer Inc.
$54.27 (2.32%) $1.23
BioNTech SE Stock Quote
BioNTech SE
$344.06 (3.17%) $10.57
Moderna, Inc. Stock Quote
Moderna, Inc.
$306.72 (1.74%) $5.23

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/05/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.