COVID-19 isn't as concerning to many Americans as it once was. Unsurprisingly, sales of COVID-19 vaccines have plunged. Does that mean investors should throw in the towel on vaccine stocks? Not at all.
For one thing, COVID-19 vaccines continue to generate significant revenue despite the sales declines. More importantly, there are lots of other types of vaccines that are key growth drivers for some pharmaceutical companies.
Here's what you need to know about investing in the top vaccine stocks, along with our top vaccine stock picks.
What to know about investing in vaccine stocks
What to know about investing in vaccine stocks
Before investing in a vaccine stock, find out about the status of the company's vaccines. Many companies already have vaccines on the market, while others may or may not win regulatory approvals.
Also, learn about any issues the vaccine makers have experienced. Even companies that have obtained the necessary regulatory authorizations can encounter problems that ultimately prevent them from achieving commercial success.
You should also consider a company's other products and pipeline drug candidates. The stocks of drugmakers with other successful products are less risky than companies that don't have other products on the market.
Top vaccine stocks
Top vaccine stocks
Here are four top vaccine stocks, plus two others to watch:
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1. Pfizer
Pfizer (PFE -0.78%) made a great decision in 2020 when it teamed up with German biotechnology company BioNTech (BNTX 0.35%) to develop a COVID-19 vaccine. The vaccine, given the brand name Comirnaty, was the first to win U.S. approval and was a massive commercial success for Pfizer -- at least for a few years.
Dwindling sales for Comirnaty have caused Pfizer's revenue to sink and have taken a steep toll on the pharmaceutical company's stock. However, Pfizer has two other vaccines on the market that generate more than $1 billion annually: pneumococcal vaccine Prevnar 20 and respiratory syncytial virus (RSV) vaccine Abrysvo.
Pfizer's pipeline features several other vaccines that are in development. They include C. Difficile vaccine PF-06425090, Lyme disease vaccine PF-07307405, streptococcus vaccine PF-06760805, and influenza vaccine PF-07252220.
Vaccines aren't the only products that could contribute to Pfizer's growth, though. The company also markets drugs that treat a wide variety of conditions, including autoimmune diseases, cancer, and migraine. In addition, Pfizer pays an attractive dividend, making the stock a favorite of income-seeking investors.
2. BioNTech
As Pfizer's partner, BioNTech (BNTX 0.35%) benefited from Pfizer's financial resources, global manufacturing capacity, and regulatory expertise. The company's messenger RNA (mRNA) technology was critical to the success of the jointly developed COVID-19 vaccine.
This COVID-19 vaccine remains BioNTech's primary revenue source for now. However, the company is working with Pfizer to evaluate two vaccines in late-stage testing, one for influenza and another that's a combination COVID-19/flu vaccine.
BioNTech is also developing several other vaccines and therapies targeting various types of cancer. Some of these programs are based on mRNA technology, while others are protein-based therapeutics.
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3. Moderna
Moderna (MRNA -3.76%) quickly followed Pfizer and BioNTech in winning U.S. approval for its COVID-19 vaccine. Although sales for this vaccine, marketed under the brand name SpikeVax, have deteriorated, it remains the biggest source of revenue for the company.
SpikeVax is no longer Moderna's only approved product, though. The company won U.S. approval in May 2024 for its RSV vaccine mResvia.
Moderna hopes to secure regulatory approvals for 10 products by the end of 2027. The first of these could be for its next-generation COVID-19 vaccine and its combination COVID-19/flu vaccine.
The company is evaluating cytomegalovirus vaccine mRNA-1647 and norovirus vaccine mRNA-1403 in late-stage clinical trials. Moderna is working with Merck (MRK 1.47%) in late-stage development of cancer vaccine mRNA-4157. Its pipeline also includes experimental vaccines and therapies in phase 1 and phase 2 testing that are targeting several viruses and rare diseases.
4. GSK
GSK (GSK 1.97%) wasn't a major player in the COVID-19 vaccine market. However, the big pharmaceutical company has 18 other approved vaccines, including Shingrix, which is a shingles vaccine.
Like Pfizer and Moderna, GSK markets an RSV vaccine for adults. The company won U.S. approval for the vaccine, which has the brand name Arexvy, in May 2023 for immunizing older adults and in June 2024 for adults ages 50 through 59.
GSK hopes to add another vaccine to its lineup soon. The company awaits regulatory approval for meningitis vaccine GSK3536819. It is also evaluating several vaccines in late-stage clinical trials.
Vaccines aren't GSK's only focus, though. The drugmaker also markets medications targeting cancer as well as cardiovascular, neurological, and respiratory diseases.
Related investing topics
Other vaccine stocks to watch
Other vaccine stocks to watch
Pfizer, BioNTech, Moderna, and GSK are arguably the top vaccine stocks for investors to consider. However, there are at least two other vaccine stocks to watch.
Bavarian Nordic A/S (OTC:BVNRY) markets vaccines for tick-borne encephalitis, smallpox, mpox (also known as monkeypox), rabies, cholera, and typhoid. An mpox outbreak in 2024 put this stock on the map for some investors.
Emergent Biosolutions (EBS -5.74%) is probably best known for its anthrax vaccines and Narcan nasal spray for the emergency treatment of opioid overdoses. However, the company also markets other products, including smallpox and mpox vaccine ACAM2000.
