Competition has been decided to develop the first Covid-19 vaccine. The battle for market share has just begun.
UK regulators have approved the emergency use of Pfizer and BioNTech’s Covid-19 vaccine, and US regulators will complete their own review later next week. Vaccinations in the United States should begin shortly thereafter, and regulators may approve Moderna’s vaccine before Christmas.
Both vaccines have been shown in late-stage clinical trials to be more than 90% effective in preventing symptomatological Covid-19. This raises the criteria that future candidates must meet. The vaccine developed by the University of Oxford and AstraZeneca has shown less impressive results. Investors voted in their wallets. BioNTech’s shares traded in New York have more than doubled over the past month, while Moderna’s shares have more than doubled in the same period.
The reaction makes some sense. After all, the initial dose is sold directly to the government at a fixed price, which could be a huge profit next year. And the success of the vaccine program heralds other therapies being developed by companies that rely on similar technologies.
Still, investors who expect these two companies to dominate this huge market indefinitely are ahead of themselves. Important questions about the long-term value of each vaccine program have not yet been resolved.
The Covid-19 vaccine contest is not over
Source link The Covid-19 vaccine contest is not over