What happened
Shares of BioNTech (BNTX -0.45%) were jumping 6% as of 11:22 a.m. ET on Friday. The gain continued momentum from earlier this week with COVID-19 cases soaring in China and Europe. And on Tuesday, BioNTech and its big partner, Pfizer (PFE -0.19%), applied for Food and Drug Administration authorization of an additional booster dose of their COVID vaccine for adults 65 or older.
So what
For months, investors appeared to be largely writing off BioNTech's prospects in the COVID vaccine market. The biotech stock fell nearly 70% from its peak, set last year. However, recent coronavirus outbreaks have caused a reexamination of those views.
The surge in COVID cases in China could put pressure on the country's government to approve BioNTech's vaccine. BioNTech partnered with Fosun Pharma to target the Chinese market.
While the numbers of COVID cases are subsiding in the U.S., the situation in China and Europe could indicate that another wave might be on the way for Americans. This could increase the likelihood that BioNTech and Pfizer win U.S. Emergency Use Authorization for a fourth dose to provide greater protection for senior adults.
Image source: Getty Images.
Now what
BioNTech obviously hopes to win approval in China for its COVID vaccine and an EUA for a fourth dose in the U.S. Both could be catalysts for the stock in the near future. In addition, look for potential new supply deals later this year. BioNTech could have more details about its progress on this front when it reports fourth-quarter results on March 30.
