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Why BioNTech Stock Is Jumping Today

By Keith Speights – Aug 4, 2021 at 12:28PM

Key Points

  • The New York Times reported that the FDA will likely approve the Pfizer-BioNTech COVID-19 vaccine by early September.
  • This isn't surprising news since there have already been reports that the FDA was under pressure to make a quick decision.

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Full FDA approval for the company's COVID-19 vaccine could be on the way very soon.

What happened

Shares of BioNTech (BNTX 1.31%) had jumped 11.8% higher at 11:42 a.m. EDT on Wednesday. The gain came after The New York Times reported that the U.S. Food and Drug Administration will likely approve the Pfizer-BioNTech COVID-19 vaccine by early September. 

So what

The potential for full FDA approval of its COVID-19 vaccine is certainly good news for BioNTech. However, it probably doesn't justify the biotech stock adding more than $10 billion to its market cap today.

Doctor giving a shot to a person with another healthcare professional watching.

Image source: Getty Images.

For one thing, the timing of the potential FDA decision isn't surprising at all. STAT News reported last week that the agency was under pressure to make a quick approval.

Also, full FDA approval isn't likely to affect BioNTech's sales. The U.S. government has already purchased more than enough COVID-19 vaccine doses for near-term needs.

Now what

BioNTech could have another positive catalyst sooner than the FDA approval decision that's anticipated by early next month. The German drugmaker is scheduled to provide its second-quarter update on Aug. 9. 

Keith Speights owns shares of Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Stocks Mentioned

BioNTech SE Stock Quote
BioNTech SE
BNTX
$163.61 (1.31%) $2.12
Pfizer Stock Quote
Pfizer
PFE
$49.49 (-0.16%) $0.08

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