Comparing Pfizer and Moderna
Over the past 5 years the main contenders in the stock market have remained unchanged with the likes of Apple, Amazon, Tesla, among others. However, very little was ever spoken about pharmaceuticals such as Pfizer, or the newbee on the block, Moderna. We all are aware why we have had a sudden increase in demand for both Moderna and Pfizer, but as part of this blog we will look into more details to ensure you have all the necessary details to make informed decisions.
The Newbee – Moderna
Moderna stock surged to a record high in early December after reporting strong effectiveness for its coronavirus vaccine. Shares of Moderna stock hit a new high on Dec. 1 after the company said its coronavirus vaccine was 94.1% effective in a Phase 3 test. In comparison, Pfizer and BioNTech say their coronavirus drug proved to be 95% effective in final-phase testing.
Moderna has several supply agreements for its coronavirus vaccine. In August, the U.S. government inked a deal for 100 million doses in exchange for up to $1.525 billion. That deal includes an option to purchase another 400 million doses. Recently, Moderna announced a supply agreement with the U.K. for up to 7 million doses of its vaccine. The company also inked a deal with the European Commission for an initial 80 million doses with the option to purchase an additional 80 million.
Pfizer’s latest Developments
Pfizer’s shares continue to correct in an uptrend, being at the level of 42.56, but there is no definite dynamics. The stock is approximately only $1 away from reaching its 2 year high and is not far from reaching its all time high. The stock’s highest price is just above $46 in 1999, just over 20 years ago. After the company announced successful trials of a coronavirus vaccine, unexpected difficulties began to arise as the number of orders for the drug increased.
Pfizer shows almost a 11% gain since late October. The FDA announced a December 10 committee review of a request from Pfizer and its German partner BioNTech to use the coronavirus vaccine in emergencies. At the same time, the company’s shares are under pressure amid positive test results for COVID-19 vaccines by competitors, Moderna and AstraZeneca, in collaboration with the University of Oxford.
The company admitted that it would not be able to produce 100 million doses of the drug by the end of 2020, as previously announced. Instead, Pfizer is counting on only 50 million doses as the expansion of the raw material supply chain took much longer than expected.
Then, the vaccine manufacturers said that it could be difficult to transport the drug. The vaccine is very demanding in terms of storage temperature and its transportation will require expensive infrastructure, which only a few of the total number of customers can afford.
Pfizer vs Moderna
It is plain to see that the Moderna stock seems more attractive to traders when looking at the chart and seeing such a strong trend. Though the question must be asked as to which is more likely to be able to maintain the gains and keep growing. On a year-to-date basis, Moderna stock has skyrocketed nearly 769% as of the close on Tuesday. Pfizer’s stock has risen 8.6% over the same time period. Both are high-profile coronavirus vaccine stocks. Moderna stock surged 6.5% to 169.91 on the stock market today. Pfizer climbed 3.2% to 42.56.
When testing, Pfizer and BioNTech’s coronavirus vaccine proved to be 95% effective against Covid-19. The Moderna drug was 94.1% effective. But many Americans still don’t trust vaccines. That’s sure to have an impact on uptake, as well as Moderna and Pfizer stock. Four in 10 people polled by IBD/TIPP say they don’t trust vaccines.
It is important for traders to analyse the charts of both Moderna and Pfizer before deciding which of the two they wish to invest in. When looking at the charts it is clear to see that Moderna’s price has been stronger with weaker retracements along the way. However, it also should be noted the stock had very little bullish movement prior to the announcement of the Vaccine. Traders are also less confident with the Moderna produced vaccine taking into consideration the company has never invented nor produced a vaccine.
Pfizer’s price movement is very different when being compared. The asset again has had a large increase over the last month and a half. Though the price movement over the past 10 years has been very “up and down”. Even though traders are of course looking for a stock with stable movement, when compared to Moderna, Pfizer has had more up trends over the past few years.