3 Vaccine Stocks for the Next Decade

Over the last 18 months, COVID-19 has dominated the stock market in general, and vaccine stocks in particular. Companies and governments are trying to vaccinate as many people as possible to minimize the threat of this disease and maybe even eradicate it. That’s the here and now, and any news can send vaccine stocks soaring, or crashing, overnight.

© Provided by The Motley Fool 3 Vaccine Stocks for the Next Decade

It’s hard to imagine what the vaccine stocks will look like 10 years from now. Will COVID-19 still be in the headlines? Or will it recede in importance? A group of Fool contributors suggest you might want to buy shares of Moderna (NASDAQ: MRNA), Pfizer (NYSE: PFE), and Vir Biotechnology (NASDAQ: VIR). Here’s why. 

© Getty Images A patient receives a vaccination.

This vaccine superstar will continue to outperform

Patrick Bafuma (Moderna): Talk about setting a high bar with your first drug to market. With $20 billion in advance purchase agreements for 2021, Moderna’s COVID-19 vaccine, Spikevax, is set to rival Humira for the best-selling drug in the world in 2021. Not to be proved a fluke, in 2022 this vaccine giant also has $12 billion in advance purchase agreements and another $8 billion in options for Spikevax.

If there is one thing COVID-19 has demonstrated, it is that this disease is resilient. With New York City set to implement vaccine passports for gyms and indoor dining, other destinations may not be far behind. And with some employers and higher education programs starting to require vaccinations, not to mention the inevitable need for boosters, I believe the demand for jabs of the company’s product, which just generated $4.4 billion in second-quarter revenue, will likely remain high.

We already knew the COVID-19 vaccine was a boon for Moderna. And its flu vaccine is expected to be on the market in 2023 — a market worth $5 billion to $6 billion annually. And you probably already knew that the mRNA specialist was working toward having a combination flu/respiratory syncytial virus/COVID-19 vaccination. Maybe you even knew that the company’s $2 billion to $5 billion cytomegalovirus vaccine candidate is close to entering phase 3 trials. What you may not have known about is CEO Stéphane Bancel’s long-term investment in oncology vaccines.

The company has two exciting cancer vaccines in a 50-50 partnership with Merck (NYSE: MRK) that I am keeping an eye on. These vaccines work by providing patients with an injection of mRNA that gets the patient’s immune system to recognize specific abnormalities that are the hallmark of cancerous cells and then get the patient’s own immune system to attack the cancer.

The most advanced product of this collaboration, a “personal cancer vaccine” for head and neck squamous cell carcinoma, is currently in phase 2 trials. Thus far in its earlier trials, the treatment has a 50% response rate, more improvements in tumor burden over time, and longer progression-free survival than current standards of care.

The other Merck-partnered oncology vaccine, while only in phase 1 trials, has a massive addressable market. This one targets mutations within the KRAS gene, with alterations of KRAS present in more than 20% of human cancers. With Moderna’s KRAS vaccine covering 80% to 90% of KRAS mutations with its vaccine, this has potential to be another multi-billion-dollar treatment for the company.

Yes, Spikevax will continue to be the company’s cash cow. However, with $12.2 billion in cash and investments, and generating over $4 billion in revenue a quarter, the company has plenty of cash to fuel its research and development pipeline. If we’re looking for an innovative vaccine maker to boost the portfolio of healthcare investors for the next 10 years, Moderna has lots of firepower in its pipeline, street credibility, and plenty of cash to make it all happen.

A $7-billion-a-year opportunity

George Budwell (Pfizer): Although vaccines have long been a steady source of revenue for multiple big pharmas, investors have historically ignored the value of this particular product category — that is, until the COVID-19 pandemic hit. The core reason is that vaccines, by and large, tend to be modest revenue generators for their manufacturers, with a few glaring exceptions such as GlaxoSmithKline‘s Shingrix and Pfizer’s blockbuster Prevnar franchise.


Video: more people stopping by local pharmacy’s to get the Covid vaccine (WFMY-TV Greensboro)

Another issue is that vaccines have proven to be extremely difficult to develop for some of the most common viral agents. Respiratory syncytial virus, for example, is a seasonal illness that reportedly results in a whopping 58,000 hospitalizations per year in children younger than 5 and 177,000 in people over the age of 65, according to the Centers for Disease Control and Prevention. Yet there are still no fully protective vaccines approved for this large unmet medical need — despite multiple attempts to develop such a vaccine over the past 60-plus years. Wall Street analysts, in turn, believe that the first company to achieve this lofty goal could be awarded with a product capable of generating over $7 billion per year in sales.

Which big pharma has the inside track at breaking into this enormous market? As things stand right now, Pfizer is arguably sitting in the catbird seat with its RSV candidate known as RSVpreF. The company recently rolled out exceedingly impressive results for the vaccine in a midstage challenge study in adults under the age of 50. Pfizer has thus decided to advance RSVpreF into a critical phase 3 trial in adults, which is set to kick off next month. Top-line results from this global phase 3 trial ought to be available sometime in the first quarter of 2022.  

If this highly anticipated trial does indeed hit the mark, the pharma titan would almost certainly have its next superstar vaccine product — possibly making its stock a great buy for long-term investors. 

“A world without infectious disease”

Taylor Carmichael (Vir Biotechnology): Vir Bio’s mission statement — “creating a world without infectious disease” — is kind of amazing. If the biotech succeeds in eliminating infectious disease from the planet, it will be the most valuable healthcare company in the world.

While it’s hugely ambitious, it’s not impossible. After all, we’ve largely eliminated some viral diseases like polio and smallpox. And it was vaccines that did it. What Vir is attempting to do, as I understand it, is use the breakthroughs in genomic research to find one-and-done vaccines for diseases like COVID-19, hepatitis B, influenza, and HIV. The company actually has four platforms, focused on antibodies, T cells, innate immunity, and small interfering ribonucleic acid (siRNA). 

We might ask why this vaccine company isn’t a leader in COVID-19 vaccines. Vir Bio may or may not be in last place, but it’s way back in the race. The company’s vaccine, sotrovimab, is still in its pre-clinical phase. Meanwhile, the mRNA vaccines from Moderna and BioNTech have been on the market for months. The Novavax vaccine has suffered delays, but should be on the market soon. This is a remarkably quick pace, and shareholders of all three companies have been amply rewarded over the last 18 months.

© YCharts NVAX

Compared to the 5,000% return of Novavax, or the 2,000% return of Moderna, or the 1,000% jump BioNTech investors have received, Vir’s 200% gain is a little disappointing. (On the other hand, Vir shareholders did six times better than people who invested in an index fund.) 

The main reason Novavax, Moderna, and BioNTech have soared is that all three companies focused on the spike protein of the coronavirus. This has been incredibly successful, creating large numbers of antibodies. If a vaccine produces a large enough level of antibodies, it wards off the disease and keeps people from getting infected.

What about the future, and all the mutating strains? Historically, the way vaccine companies dealt with mutation in the past, like with the flu, was to vaccinate people again and again. You vaccinate for the known strains and hope the drug will produce enough antibodies and T cells to ward off mutating strains as well. That’s why both Novavax and Moderna are pursuing a flu/COVID-19 combo shot — the plan is for people to take it every year.

That plan might come to a crashing halt if Vir succeeds with its one-and-done vaccine. While Vir might seem too far back in the race to make any difference, the company has an ace up its sleeve. The Food and Drug Administration has given the company an Emergency Use Authorization to market sotrovimab not as a vaccine, but as a treatment for people who have already been infected with COVID-19. So investors will have real-world data about how the company’s drug works.

Of course the COVID-19 treatment market is vastly smaller than the vaccine market. But what makes Vir so interesting is the company’s ultimate focus. Its mission is to eliminate infectious disease from the planet. Today, you might invest in Vir for its COVID-19 treatment. But what’s really exciting are the vaccines the company hopes to introduce over the next decade. If Vir successfully removes one major illness from the world, investors will make a lot of money. 

SPONSORED:

10 stocks we like better than Moderna Inc.

When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Moderna Inc. wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 7, 2021

 

Patrick Bafuma has no position in any of the stocks mentioned. George Budwell has no position in any of the stocks mentioned. Taylor Carmichael owns shares of Novavax. The Motley Fool recommends GlaxoSmithKline and Moderna Inc. The Motley Fool has a disclosure policy.

Internet Explorer Channel Network
News Related

OTHER NEWS

India celebrates giving a billion doses of Covid vaccine

About half of India’s nearly 1.4 billion people have received at least one dose while around 20 percent are fully immunized. Read more »

Jessica Simpson is 'determined' to stick to her workout regime

Jessica Simpson wants to stick to her fitness goals. The singer-turned-designer has posted an update about her exercise regime on social media, sharing a photo of herself standing on a ... Read more »

As Delta Sub-Variant AY.4.2 Spreads, How Worried Should We Be?

Data is slowly but increasingly suggesting that the COVID AY.4.2 variant has a growth advantage over other Delta types, according to a genomics expert. © Justin Tallis/AFP / Getty A ... Read more »

Ten Years On, Gene Therapy Still Beating Most Cases of 'Bubble Boy' Immune Disease

THURSDAY, Oct. 21, 2021 (HealthDay News) — Nine of 10 patients with so-called “bubble boy” immune disease who received gene therapy about a decade ago are still disease-free, researchers report. ... Read more »

Are US booster shots sapping the world's vaccine supply?

In fall 2020, Johnson & Johnson announced a deal with Aspen Pharmacare, a pharmaceutical company based in South Africa. Once Johnson & Johnson gained approval from the World Health Organization ... Read more »

Booster dose of Pfizer/BioNTech coronavirus vaccine shows 95.6% efficacy in Phase 3 trial, companies say

A booster dose of the Pfizer/BioNTech coronavirus vaccine was found to have a high efficacy — 95.6% — against Covid-19 in a Phase 3 trial, the companies announced on Thursday. ... Read more »

6 of the best vegan restaurants in Glasgow ahead of COP26, according to Happy Cow

If you’re looking for a meat-free meal while out and about in Glasgow, why not try on of these vegan restaurants? © Taste the best vegan food that Glasgow has ... Read more »

Is It Too Late to Buy Sony Stock?

Sony‘s (NYSE: SONY) stock price rallied more than 50% over the past 12 months and is hovering near an all-time high as of this writing. The stock has also more ... Read more »

If you blow your nose too hard water could squirt out your EYE – here's why

IT’S a party trick that’s bound to get some gasps. Squirting water out the eye is possible for some – if they blow their nose too hard. Stick to gentler ... Read more »

Taste by Stanley Tucci review: the film star embraces his foodie side

© Getty Images stanleytucci In April 2020 Stanley Tucci got us all hot and bothered when he posted an Instagram Live video of himself concocting ‘the perfect negroni’ for his ... Read more »

BRIEF-PDS Biotechnology Corp Provides Update On National Cancer Institute-Led Phase 2 Clinical Trial Of Pds0101-Based Combination

Oct 21 (Reuters) – PDS Biotechnology Corp: * PDS BIOTECH PROVIDES UPDATE ON NATIONAL CANCER INSTITUTE-LED PHASE 2 CLINICAL TRIAL OF PDS0101-BASED COMBINATION * PDS BIOTECHNOLOGY CORP – ANNOUNCED TEMPORARY ... Read more »

3 Stocks to Watch Closely This Earnings Season

Another earnings season has kicked off, and hundreds of companies will deliver their latest quarterly results over the next few weeks. Some of those updates will be more important than ... Read more »

Could This Be the Next Blockbuster Indication for Eli Lilly?

Eli Lilly (NYSE: LLY) and Incyte‘s (NASDAQ: INCY) drug, Olumiant, has received emergency use authorization (EUA) from the U.S. Food and Drug Administration (FDA) to treat hospitalized COVID-19 patients with ... Read more »

What happens when travelers test positive for Covid on vacation?

There’s no denying that going on vacation has become a lot more complicated due to Covid-19. © Courtesy April DeMuth Well over a year into the pandemic, border restrictions are ... Read more »

Couples learn how to have better sex in Gwyneth Paltrow's Netflix series Sex, Love & Goop

Gwyneth Paltrow admits she has insecurities about her physical appearance in an episode of her new Netflix series Sex, Love & Goop, but she’s working on that. The Oscar winner ... Read more »

UCT may face legal action over mandatory Covid-19 vaccination policy

© Provided by Daily News CAPE TOWN – UCT may soon be challenged for its decision to approve mandatory vaccination in principle, for its campus community for the next academic ... Read more »

Mandatory vaccination: 'It's happening. Employers are entitled to consider it'

© Provided by CapeTalk Companies may consider mandating vaccinations for their employees Employees may refuse on medical or Constitutional grounds Employers may not force employees to disclose their vaccination status ... Read more »

Fewer food-borne disease outbreaks in 2020

The NVWA Netherlands Food and Consumer Product Safety Authority and the Municipal Health Service (GGD) registered fewer outbreaks of food-related infections and poisonings than in previous years. Campylobacter, Salmonella and ... Read more »

I used sunbeds twice a week to banish winter blues before being hit with skin cancer

A MUM who would use sunbeds to banish her winter blues has urged people to use fake tan instead after she was diagnosed with skin cancer. Paris Tippett used sunbeds ... Read more »

Pfizer Booster Thumbs Up; Moscow Tightens Lockdown: Virus Update

(Bloomberg) — Pfizer Inc. and BioNTech SE said a booster shot of their Covid vaccine restored full protection in a large study, bolstering the argument for giving a third dose ... Read more »

Broken heart syndrome on the rise in women

© Provided by COVER News India A medical phenomenon known as broken heart syndrome is on the rise amongst women. The condition, also known as Takotsubo cardiomyopathy, refers to the ... Read more »

16 Canadian designers showcase creations to support breast cancer awareness

© Provided by The Indian Express To promote breast cancer awareness and research, Canada’s iconic Cashmere Collection returned for an in-person runway show at The Globe and Mail Centre, Toronto. ... Read more »

How Kareeena Kapoor Khan is finding her balance and focus while being a working mommy to Taimur and Jeh will leave you impressed and inspired - watch

© Provided by BollywoodLife.com A post shared by ANSHUKA | Yoga & Wellness (@anshukayoga) Kareena Kapoor Khan has always been an inspiration when it comes to fitness. The actress has ... Read more »

Kareena Kapoor Khan Shares her Thursday Workout Stats on Instagram

© Provided by News18 Kareena Kapoor Khan Shares her Thursday Workout Stats on Instagram Bollywood actor Kareena Kapoor Khan has been sharing her fitness routine on Instagram following the birth ... Read more »

Costa's new Christmas range includes pigs in blanket panini and Quality Street drinks

If you are in need of something to look forward to then rest assured Costa has you covered. The coffee shop has launched its Christmas 2021 range which is full ... Read more »

Triple chocolate mousse cake

© Good Housekeeping UK Chocoholics beware – this mirror glazed chocolate mousse cake is divine. Yields: 12 servings Prep Time: 50 mins Process Time: 1 hour 20 mins Total Time: ... Read more »

TikTok divided after woman serves up sharing pasta dinner directly to her table

© TikTok/ @karimaskollection WhatsApp Image 2021-10-21 at 10.59.28 AM.jpeg A woman has sparked a debate after she made a sharing pasta dish served directly to her kitchen table. Posting on ... Read more »

7 Reasons Why Novavax Is a No-Brainer Pick Over Ocugen

There’s no contest between the stock performances of Novavax (NASDAQ: NVAX) and Ocugen (NASDAQ: OCGN) so far this year. Ocugen’s share price has skyrocketed roughly seven times more than Novavax’s has. © ... Read more »

48 Biggest Movers From Yesterday

© Provided by Benzinga Gainers Xiaobai Maimai Inc. (NASDAQ: HX) shares surged 98.4% to settle at $18.87 on Wednesday on above-average volume. The company on Tuesday disclosed the resignation of ... Read more »

Sinema's giant flip-flop: She once campaigned on issues she now wants dropped from Biden's plan

© Provided by Salon Kyrsten Sinema U.S. Sen. Kyrsten Sinema (D-AZ) speaks during a United States Senate Committee on Finance hearing to consider Chris Magnus’s nomination to be Commissioner of ... Read more »

BRIEF-Sio Gene Therapies Announces Positive Interim Safety And Biomarker Data From Ongoing Phase 1/2 Clinical Study Of AXO-AAV-GM1 Gene Therapy In GM1 Gangliosidosis

Oct 21 (Reuters) – Sio Gene Therapies Inc: * SIO GENE THERAPIES ANNOUNCES POSITIVE INTERIM SAFETY AND BIOMARKER DATA FROM ONGOING PHASE 1/2 CLINICAL STUDY OF AXO-AAV-GM1 GENE THERAPY IN ... Read more »

Doctors warn Covid restrictions need to return NOW – as expert says UK ‘already has 100,000 daily cases'

DOCTORS have called on ministers to implement more Covid restrictions now, before it is too late. The Government’s “Plan B”, which includes face coverings and working from home, has been ... Read more »

Covid in babies to 18 year olds ‘higher than ever' with the UK ‘really in trouble' as cases soar

COVID-19 infections are 'higher than ever' in babies to 18-year-olds and one expert has warned that the UK is 'really in trouble' as coronavirus cases continue to soar. Daily infections ... Read more »

Our boy's time is running out in his battle with silent killer – he needs your help

A FRANTIC dad has told how his son is running out of time in a battle with a silent killer – and needs the British public's help to survive. Little ... Read more »

Do you need an antibody test to check if the COVID-19 vaccine is still working?

© Provided by Lifestyle Asia As the numbers of those vaccinated against the COVID-19 virus is steadily rising, a question continues to bother many — should one get an antibody ... Read more »

These are 4 False Alarms for Miscarriages

© Provided by News18 These are 4 False Alarms for Miscarriages Pregnancy is an extremely delicate phase, especially during the first three months. During this period, women witness various changes ... Read more »

Children sick with COVID and other bugs flooded hospitals in the fall. Doctors worry what winter will bring.

Nurse Kristen Brown cares for 6-year-old Jaxon Philiph, of Cedar Rapids. Jaxon was in the PICU after contracting COVID-19. IOWA CITY, Iowa – It feels like winter came five months ... Read more »

Fears for Christmas Day meet ups if households are banned from mixing under ‘Plan C' as Covid resurges

IT'S feared loved ones could be stopped from meeting AGAIN this Christmas after reports ministers are discussing emergency Covid plans. Households would be banned from mixing under the 'Plan C' ... Read more »

In-N-Out Burger clashes with San Francisco over vaccine mandate: 'We refuse to become vaccination police'

© Provided by Independent Online (IOL) By Julian Mark Washington – Popular California burger chain In-N-Out is refusing to comply with San Francisco’s mandate that restaurants check vaccine cards before ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic