COVID-19 vaccine makers rebound amid post-pandemic prospects

Shares of Moderna (NASDAQ:MRNA), Pfizer (NYSE:PFE), BioNTech (NASDAQ:BNTX), and Novavax (NASDAQ:NVAX) are continuing a recent upswing as investors look for their post-pandemic growth trajectory amid declining demand for COVID-19 vaccines and therapeutics.

All four stocks are outperforming the broader biotech sector, as represented by the SPDR S&P Biotech ETF (XBI), on Wednesday, despite sharply trailing the industry over the past three years amid a notable decline in their COVID-backed revenue streams.

Their recent upswing coincides with a change in their long-held narratives, as companies channel their pandemic-era resources for new growth avenues.

Pfizer (PFE) completed its ~$43B Seagen acquisition in December, turning to a new class of cancer drugs called antibody-drug conjugates (ADC) to bring back its growth momentum.

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

Meanwhile, Moderna (MRNA) is awaiting a potential FDA nod for its messenger-RNA-based vaccine targeted at respiratory syncytial virus (RSV) this month.

If approved, the company is expected to join Pfizer (PFE) and GSK (GSK) in the RSV vaccine market, which, according to the London-based health analytics firm Airfinity, could surpass $10B 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 COVID-19 vaccine race in the U.S., recently struck a licensing agreement worth up to $1.2B with Sanofi (SNY) to jointly commercialize and develop its protein-based shot.

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