After months of waiting, the race to the Covid vaccine is now in its home stretch. Despite recent pullbacks in research, many companies remain confident of the outcome as they enter Phase 3 of the vaccine trials. With optimism abounds, investors are now placing their bets on the hottest biotech stocks in the sector. Covid 19 vaccine stocks are on fire.
While the number of stock options to choose from are few and far between, only a handful will reign as the ultimate winners. Here are 3 stocks that we think are a safe bet right now.
The biotech giant, Pfizer is among the top contenders for the Covid vaccine. The company is working with the German pharmaceutical company BioNTech to produce the vaccine. In a statement released by Pfizer, the firm hopes to have a vaccine ready for circulation by the end of November.
However, the company will need to overcome two hurdles before the BNT162 vaccine is available to the public. First, it has to prove the efficacy of the vaccine in treating the virus and second, get approval by the FDA and be able to produce at scale. However, once Pfizer overcomes these hurdles, they stand to make a lot of money.
The company has already signed a deal with the FDA to supply 100 million doses of the vaccine and this number could go as high as 400 million. It also has international deals with nations such as China and the European Union.
In addition to its vaccine trial, the company is set to merge with Mylan which could diversify its pharmaceutical portfolio. Pfizer shows a lot of upside for investors in the future and comes with an attractive dividend yield of 4.1%.
Another frontrunner in the race to the Covid vaccine is AstraZeneca. Like many of its peers, the company is also in its final phase of vaccine trials. This biotech stock has emerged as a favorite among many investors given the firm’s history of successful product launches.
Despite an initial setback, the company clawed its way back to the top and plans to release the results of the trial by the end of the year. AstraZeneca is no stranger to the final stages of vaccine trials and has successfully produced a flu vaccine at scale. This has earned the company more than $25.7 billion in revenue.
However, the company hasn’t put all its eggs in its Covid vaccine basket. It also has nine new therapies undergoing clinical trials. The success of these trials could be a massive profit generator for the company in the future. This creates a win-win situation for investors who want to put their money behind this stock.
Moreover, AstraZeneca already has a strong supply chain in place which would make it easier to fast-track the distribution of the vaccine. Given the positive outlook, the Street estimates that the company will experience an annual growth rate of 19% over the next five years.
Moderna Therapeutics is another major beneficiary of the biotech stock acceleration. Unlike many other companies in the race, Moderna is yet to produce a successful vaccine since its inception. But while this can seem like a setback, it also means that the company is in for much greater upside if it wins the Covid vaccine race.
The company’s mRNA-1273 vaccine is in its final phase and recently announced that it is now a candidate for fast-track approval in Europe. If mRNA receives approval from the regulatory board, it could be a gamechanger for the company. First, it could generate revenue which will allow Moderna to pay down its debt. Second, mRNA, unlike traditional drugs, can replace biologics which currently accounts for a large slice of the biotech market.
This means that Moderna has the potential to achieve a greater share of the market if the mRNA drug is successful. For investors, this is great news as an investment in the biotech stock could be the winning ticket. It’s also worth noting that Moderna stock is up 262% to date.
The stakes for Moderna are definitely higher than its competitors but if the company wins this race, the opportunity for growth is limitless. Hence, if you are an investor with a high-risk appetite, an investment in Moderna stock is worth your time.
It’s the march of the biotech stocks this year and investors are looking to make some big gains in the sector. As we approach the home stretch in the race to the Covid-19 vaccine, these stocks are poised for a greater upside.