What happened
Moderna (MRNA 13.67%) and Pfizer (PFE 3.64%), makers of two of the three coronavirus vaccines authorized for use in the U.S., both outpaced the sagging S&P 500 index on Thursday. Moderna stock fell less precipitously than the closely watched index, sliding by 0.4%, while Pfizer rose more than 4% on the day. A key catalyst for both was the latest vaccine recommendation from a top healthcare authority.
So what
On Thursday, an influential committee advising the Centers For Disease Control and Prevention (CDC), voted to recommend two coronavirus vaccines be preferred for use. Johnson & Johnson's (JNJ 1.49%) shot was not one of them.
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The shots from Moderna and Pfizer, which developed its vaccine in collaboration with German biotech BioNTech (BNTX 11.11%), are both authorized in this country: Pfizer/BioNTech's Comirnaty is fully approved, while Moderna's mRNA-1273 has received Emergency Use Authorization.
The Advisory Committee on Immunization Practices is a body of healthcare experts that for obvious reasons has been a crucial unit during the pandemic. On the basis of recent research (plus anecdotal evidence), it is increasingly concerned about the possibility of the Johnson & Johnson vaccine leading to a rare blood clot affliction.
One likely additional reason for Pfizer's stock price pop, as opposed to Moderna's narrow victory over the S&P 500, was a glowing article published Thursday morning by Bloomberg. Citing an estimate of roughly $17 billion for 2022 sales of Pfizer's pipeline COVID-19 pill Paxlovid from healthcare sector researcher Airfinity, Bloomberg wrote that the company is "set to dominate" the market for COVID-19 pills in the new year.
Now what
Today's developments burnished the reputations of Moderna, Pfizer, and BioNTech as effective fighters on the front lines of the grinding battle against COVID-19. Pfizer is a standout among the three; even if Airfinity's estimate proves to be high, when or if Paxlovid is authorized for use in a major jurisdiction (or several), it will almost certainly be a go-to solution in treating this intractable disease.
