The Shares of Pfizer Are Up on Encouraging COVID-19 Vaccine Trial Data

The Shares of Pfizer Are Up on Encouraging COVID-19 Vaccine Trial Data
July 6, 2020


Shares of Pfizer Inc. (NYSE: PFE) have been on an uptrend after the company reported upbeat preliminary results from a trial of a potential COVID-19 candidate, in partnership with BioNTech SE (Nasdaq: BNTX). On Thursday, the stock of Pfizer closed at $34.51. Since the beginning of this year shares of Pfizer has lost 16.5%, while BioNTech’s stock has appreciated by 97%.

The preliminary (Phase 1/2) study had 45 volunteers aged between 18 and 55 years. The trial began with a random selection and vaccination. Twenty-four volunteers got two turns of two small doses (10 or 30 micrograms) of the drug candidate. Twelve volunteers received one high dose (100 micrograms), while nine got two doses of a placebo.

The New York-based company revealed that one of its four COVID-19 drug candidates generated neutralizing antibodies, which academics believe is a requisite to create immunity to the coronavirus, in all volunteers who were treated with two of the 10 or 30 microgram shots. The volunteers were assessed 28 days after treating with doses. The preliminary data was published by medRXiv. The company stated that the quantum of nullifying antibodies were 1.8 to 2.8 times greater than in healed COVID-19 patients.

The US-headquartered pharmaceutical company has joined hands with the German drug manufacturer BioNTech for the development of a COVID-19 vaccine. The trial vaccine of the company is made up of genetic material called RNA, or mRNA. Being a genetic code, the mRNA asks cells what to create, in this instance, an antigen that may arouse an immune reaction to the coronavirus.

The antibody-related conclusions are crucial because they signify that the trial drug can trigger the creation of antibodies to the same extent or greater than those recorded in recuperating serum, which is obtained from individuals who have recovered from the coronavirus infection.

Pfizer revealed that the vaccine was broadly well accepted, even though the trial vaccine made some patients feverish, particularly those who were part of the 100 microgram batch.

As mentioned earlier, Pfizer is assessing four potential COVID-19 candidates, and only additional data will reveal the one which is most suited for the next stage (Phase 2b/3) trial, which will involve 30,000 volunteers in the US and Europe. The trial is planned to start at the end of July, subject to regulatory clearance. The data is currently undergoing peer review.

If the vaccine, currently referred to as BNT162b1, clears all trials successfully, BioNTech and Pfizer anticipate manufacturing up to 100 million doses by the end of 2020, and perhaps over 1.20 billion doses by the end of next year.

Regarding the outcome of trials, Kathrin Jansen, head of Pfizer’s vaccine research and development, “We are encouraged by the clinical data of BNT162b1, one of four mRNA constructs we are evaluating clinically, and for which we have positive, preliminary, topline findings. We are dedicated to developing potentially groundbreaking vaccines and medicines, and in the face of this global health crisis, we approach this goal with the utmost urgency.”

BioNTech’s co-founder and CEO Ugur Sahin said, “These first trial results show that the vaccine yields immune activity and causes a strong immune response.”

Recently, the World Health Organization revealed that 17 potential drug candidates are undergoing human trials, and 132 are in preclinical stages. At the end of last week, as per data compiled by Johns Hopkins University, over 10 million people across the globe have been infected by COVID-19, and more than 511,851 have lost their lives.

As per WHO, AstraZeneca, which is backing Oxford University’s drug tests, US-headquartered Moderna and CanSino in China, are the leaders with encouraging lab findings.

Oxford’s drug is supposedly the leader as it is currently undergoing phase 3 trials with enrolment from 10,000 volunteers. The initial findings confirm the drug to be safe and efficient in cases of urgency and could be all set for production by October.

The Chinese military has received the green light to trial a drug developed by its researchers in partnership with CanSino Biologics. The US biotech firm Moderna is on course to start its 3rd stage of human trials by the end of July, with participation by 30,000 volunteers. If the trials succeed, Moderna hopes to launch the drug by early 2021.

The National Institutes of Health, backing Moderna’s vaccine, stated that it expects 80% to 90% success in the trial. Nevertheless, some experts believe that the complex process of developing a vaccine for COVID-19 does not end with success in the trial.

Dr. Todd Ellerin, director of infectious diseases at South Shore Health and an ABC News medical contributor, stated, “Developing safe and effective vaccines isn’t the only challenge. We need to have enough supply and potentially hundreds of millions of Americans to get vaccinated in order to achieve herd immunity.”

Some experts (doctors and scientists) have highlighted the need to include a large number of people, both young and old, during the trial stage to demonstrate the ability and safety of any drug.

Dr.Ashish Jha, director of the Harvard Global Health Institute, said, “If we sort of cut corners on those things, I don’t think we’ll create the confidence people need. We have to do it right.”

In the US, Dr. Anthony Fauci, the country’s top expert in infectious disease, has opined that he is “cautiously optimistic” that researchers will be able to identify a safe and efficient drug by early 2021.

The upbeat preliminary results are anticipated to keep the stock bullish in the short-term.

Technically, the stock is rising after finding support at 33. The next resistance is anticipated only near 40. Additionally, the money flow index indicator also has a positive reading. Therefore, we are expecting the stock to remain in an uptrend in the short-term.

pfe - technical analysis - 6th July 2020

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.


Andrew Wright

Prior to founding in 2014, Andrew worked as a proprietary trader, then as a market maker. As a market maker, he traded options in over 100 stocks, he then began trading currency pairs in 2013. Andrew still actively trades both, and prides himself on educating and informing traders on the benefits of both Binary Options and Forex.

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