Pfizer ( PFE 1.77% ) and BioNTech ( BNTX 5.56% ) recently lagged behind in their competition with Moderna ( MRNA 3.59% ) Creating new mixed vaccines that have the potential to generate billions in yearly revenue is a key focus. While initial findings from a trial combining influenza and COVID-19 vaccines were not a total failure, the margin for error in vaccine research and development is very narrow.
Experiencing a setback in a clinical trial that is in its advanced stages is unfortunate; however, it may not be wise to immediately sell any Pfizer or BioNTech shares. Shareholders of both companies should be well-informed before making hasty decisions solely based on the results of a single clinical trial.
Pfizer and BioNTech fail to achieve success in the field of influenza.
Pfizer and BioNTech have recruited over 8,000 individuals without health issues for a phase 3 study involving an mRNA vaccine designed to provide protection against both influenza and COVID-19. This combined vaccine includes the COVID-19 vaccine developed by the two companies, which has been administered to millions of people, along with Pfizer’s experimental mRNA influenza vaccine.
As anticipated, individuals who received the combined vaccine showed immune reactions that matched or exceeded those of recipients of the COVID-19 vaccine alone. The combined vaccine also demonstrated effectiveness comparable to that of an authorized flu vaccine in preventing influenza A infections. However, it did not prove to be as effective in protecting against influenza B strains.
Influenza B has caused challenges for other developers of mRNA vaccines before Pfizer, as seen in events this April. CureVac and its companion GSK It was reported that the immune reactions to their experimental vaccine were not as strong as those seen with a licensed vaccine.
In 2023, Moderna faced a setback with its seasonal flu vaccine due to issues with the influenza B strain. Meanwhile, Pfizer and BioNTech were at a disadvantage as Moderna had already successfully completed a phase 3 trial for its combined flu and COVID-19 vaccine, demonstrating non-inferiority.
What are the future plans for Pfizer and BioNTech?
During the second quarter, Pfizer saw a significant 87% decline in sales of Comirnaty, their approved COVID-19 vaccine, amounting to $195 million. However, this decrease did not greatly impact Pfizer as they have been investing their earnings into developing new products. Excluding the impact of currency fluctuations and sales of Comirnaty and Pfizer’s antiviral treatment for COVID-19, the company experienced a notable 14% increase in second-quarter sales compared to the previous year.
Pfizer’s stock provides a substantial dividend yield of 5.9% based on current prices, and this percentage is likely to increase in the future. In December of last year, the company increased its quarterly dividend for the 15th year in a row.
Pfizer anticipates that its adjusted earnings will fall within the range of $2.45 to $2.65 per share for the current year. This amount exceeds the requirement to support its dividend obligation of $1.68 per share per year and allows for potential increases in the dividend payout.
Both partners were optimistic that combining Pfizer’s flu shot with Comirnaty could increase the declining interest in the COVID-19 vaccine. This is particularly crucial for BioNTech, as it still depends on the vaccine for 56% of its overall income. The remaining revenue of BioNTech is generated from a contract with the German government for pandemic readiness.
BioNTech currently has just one vaccine that is at the commercial stage, however, it has a significant opportunity to launch its upcoming products. By the end of June, the company had $11.4 billion in cash reserves despite experiencing a loss of $891 million in the second quarter.
It is not the right time to make a sale.
BioNTech is utilizing its significant financial resources to progress a range of innovative cancer treatments. The company has three cancer vaccine candidates currently undergoing phase 2 clinical testing. While past experiences have made the speaker cautious about cancer vaccines in late-stage trials, a positive outcome could lead to a significant increase in the company’s stock value.
Apart from its cancer vaccine candidates, BioNTech is working on bispecific antibodies and an antibody-drug conjugate as treatments for cancer. Both of these approaches have shown promising results. blockbuster Treatments were previously attempted, and it is possible that a positive outcome in a trial can increase the stock price well before costs deplete its financial reserves.
The recent setback in phase 3 of the vaccine combination trial is seen as a small obstacle for Pfizer shareholders. The increase in sales of newly launched products suggests that holding onto or even buying more of the Big Pharma stock could be a wise decision.
