On Friday, the U.S. Federal Drug Administration ( FDA ) okayed the launch of updated vaccines as part of the 2024-2025 campaign against new Covid strains.
Drug manufacturers have been waiting on approval from the agency, whose decision-making was complicated by the fact that the virus keeps mutating. FDA settled on targeting JN.1 — the variant responsible for most Covid cases of early this year.
A vaccine targeting JN. 1 should offer broader protection against its offshoots KP.2, KP.
3 and others that may pop up in the coming months. Now that it’s a go, drug companies will ramp up production to roll out the vaccines by early September. For investors, the FDA’s action puts on the spotlight vaccine stocks that could see significant appreciation as the booster shots hit the market.
Let’s examine three vaccine stocks that have a high chance to benefit from the action. Pfizer (PFE) Pfizer’s (NYSE: PFE ) first quarter report this year had mixed results. Though it topped earnings per share ( EPS ) and revenue analyst estimates, it reported a decline in other metrics, such as a 19% year-over-year ( YOY ) decline in revenues.
The drugmaker has struggled with declining revenues, especially in its Covid vertical, with worries about the pandemic decreasing. It hopes to bring its financials on an even keel with a new Covid vaccine in the pipeline. Further, Pfizer is slated to be one of the companies that will roll out a vaccine for the Covid variant JN.
1 and possibly the KP.2 va.