Race ramps up between Pfizer and Moderna
As the race ramps up between the two companies to successfully create a COVID-19 vaccine, one firm has vastly outpaced the other with share price rise of 409% since the start of the year.
It was announced this week that US drug firm Moderna had created a vaccine with 94% effectiveness while Pfizer had a successful trial, in partnership with German biotech firm BioNTech, with 90% effectiveness earlier this month.
Moderna’s shares rose 12% on the news, compared to 15% for Pfizer and 23% for BioNTech after their joint announcement, but shares in the US firm had risen much more sharply over the past year.
The firm was far younger than Pfizer having been set up in Massachusetts a decade ago and only listing on the NASDAQ in December 2018. Since listing, shares had returned 424%.
Shares had risen 409% since the start of the year as the company announced its plans to work on a vaccine before it later announced a successful trial in November.
According to FE Analytics, there were no funds within the Australian Core Strategies universe which were holding Moderna. There were three holding Pfizer and two holding BioNTech, these were Platinum European and Platinum International Health Care holding the European biotech firm and BetaShares Global Healthcare ETF, CFS FirstChoice Acadian Wholesale Geared Global Equity and Dimensional Global Value Trust holding the US pharma major.
Seema Shah, chief strategist at Principal Global Investors, said: “The global population couldn’t have asked for more from the Moderna vaccine. With an almost 95% efficacy and more acceptable logistical and storage dynamics, [Moderna’s] news should solidify the market rally that has been in play since last week. Visibility towards a return to normality is increasing, and this should provide more fuel to the reflation rally, with small caps, value and cyclicals clear beneficiaries.”
Janus Henderson portfolio manager, Andy Acker, and director of research, Matt Peron, said: “The news from Pfizer and BioNTech raises hope that a solution may be on the horizon and other vaccines targeting the same SARS CoV-2 protein – including a second mRNA therapy from Moderna – may be successful.
“The approval of multiple vaccines is viewed as critical to quickly and effectively protecting the world’s population with important implications for the global economy. What’s more, mRNA platforms could be readily modified to address new versions of the virus in the future, should that become necessary.”
AUTHOR
Laura Dew
Recommended for you
Platinum Asset Management has put its two closed-end funds under strategic review in a bid to reduce the share price discount to pre-tax NTA and maximise shareholder value.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
