Please ensure Javascript is enabled for purposes of website accessibility

Why AstraZeneca May Dominate the European Vaccine Market

By Adria Cimino - Mar 6, 2021 at 6:12AM

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

Europe is already vaccinating with AstraZeneca's product.

Demand in the U.S. might be limited, since President Joe Biden recently bought enough vaccine doses from Pfizer (PFE -1.18%) and Moderna (MRNA -5.93%) to vaccinate nearly all Americans. But global demand remains high. In this Motley Fool Live video recorded on Feb. 26, 2021, healthcare and cannabis bureau chief Corinne Cardina and Fool.com contributor Adria Cimino discuss opportunity in Europe and why AstraZeneca might have an advantage.

Corinne Cardina: Let's talk about demand. When you look at the United States, we have 600 million doses that have been secured. That's enough to vaccinate 330 million people. Is there any demand left in the U.S.? And what do we know about the global demand and the pricing landscape?

Adria Cimino: Okay. Well, as far as the U.S., I'm concerned about near-term demand in the U.S. I think because of that big order from the U.S. government to cover the whole country in the near term, I think that that could be something that could block a lot of other companies from getting in on the U.S. market right away this year, unless really Pfizer or Moderna was to have a production problem and they couldn't deliver all the order. That will be different, but otherwise, I don't s

ee how another company could make inroads at this point. The opportunity in the U.S. is more in the long term. It's more of the idea of a company coming up with a great booster or they can handle the new strains or a one-shot vaccine and things like that. That's something to keep an eye on.

As far as global demand, I think that's pretty high. If you look at Europe, it's really been struggling. It's been very slow to authorize and order vaccine doses. This is a market where I think there could be a lot of potential. Now, the only thing is pricing has been generally lower in Europe, so that could be one issue.

Also, Europe has a lot of vaccine doses from AstraZeneca (AZN -0.48%). AstraZeneca, as we've said, is one that is not taking a profit. So they've been able to get a lower price on that vaccine than they would from another company that is taking a profit. That could be difficult for another company trying to enter the European market right now. That's something we'll just have to keep an eye on moving forward.

Adria Cimino has no position in any of the stocks mentioned. Corinne Cardina owns shares of Moderna Inc. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.

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

AstraZeneca PLC Stock Quote
AstraZeneca PLC
AZN
$66.42 (-0.48%) $0.32
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$49.27 (-1.18%) $0.59
Moderna, Inc. Stock Quote
Moderna, Inc.
MRNA
$158.00 (-5.93%) $-9.96

*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 analyst team.

Stock Advisor Returns
402%
 
S&P 500 Returns
129%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

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

Premium Investing Services

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