COVID-19 vaccine makers gain ground in post-pandemic outlook

Moderna shares (NASDAQ: MRNA), Pfizer (NYSE:PFE), BioNTech (NASDAQ:BNTX), and Novavax (NASDAQ:NVAX) continue their recent rise as investors look for their post-pandemic growth trajectory amid declining demand for COVID-19 vaccines and therapeutics.

All four stocks outperform overall biotech sector, represented by the SPDR S&P Biotech ETF (XBI), on Wednesday, despite significantly lagging the industry over the past three years amid a notable decline in their COVID-supported revenue streams.

Their recent recovery coincides with a shift in their long-standing narratives, as companies channel their pandemic-era resources toward new avenues of growth.

Pfizer (PFE) completed its approximately $43 billion acquisition of Seagen in December, looking to a new class of cancer drugs called antibody-drug conjugates (ADCs) to regain growth momentum.

The New York-based pharmaceutical giant has announced numerous cost-cutting initiatives in recent months to improve its bottom line following a 42% year-on-year revenue decline in 2023.

Meanwhile, Moderna (MRNA) is awaiting a possible green light from the FDA this month for its messenger RNA vaccine targeting respiratory syncytial virus (RSV).

If approved, the company is expected to join Pfizer (PFE) and GSK (GSK) in the RSV vaccine market, which London-based health analytics firm Airfinity estimates could top $10 billion. by 2030 in G7 countries.

BioNTech (BNTX), Pfizer’s (PFE) partner for its Comirnaty COVID-19 vaccine, is diversifying its pipeline away from mRNA-based programs with studies for its ADC and bispecific antibody candidates such as BNT323 and BNT311 are currently underway for cancer.

Novavax (NVAX), a distant third in the U.S. COVID-19 vaccine race, recently entered into a licensing deal worth up to $1.2 billion with Sanofi (SNY) to commercialize and develop jointly its protein-based vaccine.

mRNA-based vaccine developers including Arcturus Therapeutics (ARCT) and CureVac (CVAC) were also among notable biotech gainers on Wednesday, along with vaccine developers such as Vaxart (VXRT) and Valneva (VALN).