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Will ETFs Gain on AstraZeneca's Latest Covid-19 Vaccine Update?
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AstraZeneca (AZN - Free Report) has provided new updates on its coronavirus vaccine candidate, AZD1222, which it co-developed with University of Oxford and its spin-out company, Vaccitech. Notably, the company has reported a vaccine efficacy of 76% in a phase III trial of AZD1222 in the United States. The data also reflected 100% efficacy against severe or critical disease and hospitalization and 85% efficacy in symptomatic COVID-19 in participants aged 65 years and above.
Markedly, the latest primary efficacy analysis included the accrual of 190 symptomatic cases of COVID-19 from the 32,449 trial participants, an additional 49 cases compared with the previously announced interim analysis. Participants were randomized on a 2:1 ratio to receive the vaccine or placebo.
The U.S.Phase III trial, namely D8110C00001, was led by AstraZeneca and funded by the Biomedical Advanced Research and Development Authority (BARDA), part of the office of the Assistant Secretary for Preparedness and Response (ASPR) at the U.S.Department of Health and Human Services (HHS) in collaboration with the Department of Defense Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND) and the Army Contracting Command, and the National Institute of Allergy and Infectious Diseases (NIAID), part of the U.S.National Institutes of Health, per the company’s press release. The NIAID-supported COVID-19 Prevention Network (CoVPN) participated in the trial.
According to the company, the vaccine was well tolerated and no safety-related issues were identified. AstraZeneca aims to file for Emergency Use Authorization (EUA) of the vaccine in the United States. AZD1222 has been granted a conditional marketing authorization or emergency use in more than 70 countries.
However, AstraZeneca was caught up in a little controversy with regard to its Mar 22 data release. The data reflected that the company had reported an efficacy of 79% at preventing symptomatic COVID-19 and 100% efficacy at preventing severe disease and hospitalization. However, National Institutes of Health’s (NIH) Data Safety Monitoring Board (DSMB) doubted that the late-stage data released by AstraZeneca from a large-scale U.S. study on its COVID-19 vaccine may have included “outdated” information. Later on, AstraZeneca reported that the efficacy of 79% was based on a pre-specified interim analysis with a data cut-off of Feb 17, per the company’s official press release.
Other COVID-19 Vaccines’ Progress So Far
The first company to initiate human clinical trials of its coronavirus vaccine candidate in the United States — Moderna (MRNA - Free Report) — has again come up with several impressive updates relating to mRNA-1273.
In the most recent announcement, the company informed about dosing the first participants in the Phase 2/3 of the KidCOVE study of the mRNA-1273 in children aged six months to below 12 years in the United States and Canada. Moderna is also studying its COVID-19 vaccine in another phase II/III study — TeenCOVE — in adolescents aged 12-17 years. Furthermore, Moderna is also manufacturing booster vaccine candidates targeting different variants of coronavirus. In this regard, the company has started dosing patients with its modified COVID-19 vaccines in an ongoing phase II study.
Novavax (NVAX - Free Report) recently announced impressive updates on its protein-based COVID-19 vaccine candidate, NVX-CoV2373. The company’s vaccine candidate has delivered final efficacy of 96.4% against mild, moderate and severe diseases caused by the original COVID-19 strain in a pivotal Phase 3 trial in the U.K.
ETFs That Can Gain
The competition to come up with a vaccine is opening up near-term opportunities, making the biotech sector a prospective space for investments. Therefore, we discuss a few ETFs that provide exposure to AstraZeneca.
Firstly, let’s look at ETFs with the highest exposure to AstraZeneca that can gain on the positive development:
The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS US Listed Pharmaceutical 25 Index, which is intended to track the overall performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. PPH holds a basket of 25 stocks, with AstraZeneca occupying the seventh spot with 4.99% weight. It has AUM of $199.6 million, with an expense ratio of 35 basis points (bps) (read: Pharma ETFs in Focus Post Q4 Earnings).
This ETF offers exposure to a basket of companies that develop therapies to treat cancer by harnessing the body's own immune system. Holding 32 stocks in its basket, it has around 3.39% exposure to AstraZeneca. The fund has AUM of $43.6 million. The product charges 79 bps in annual fees (read: A Guide to Biotech ETF Investing Amid the Coronavirus Crisis).
Other broader biotech ETFs that hold companies developing tests, vaccines and therapies for the coronavirus include:
This fund seeks to provide exposure to U.S. biotechnology and pharmaceutical stocks and tracks the Nasdaq Biotechnology Index. Holding 281 securities, the fund has an AUM of $9.91 billion, with an expense ratio of 0.46% (read: ETFs to Tap Amgen's Drive for Cancer Deal).
The fund seeks daily investment results, before fees and expenses, which match the S&P Biotechnology Select Industry Index. It holds about 192 securities in its basket. It has AUM of $6.79 billion and an expense ratio of 0.35% (read: 5 ETF Investing Areas for March to Boost Returns).
The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. It holds about 25 securities in its basket. Its AUM is $473.7 million andit hasan expense ratio of 0.35%.
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Will ETFs Gain on AstraZeneca's Latest Covid-19 Vaccine Update?
AstraZeneca (AZN - Free Report) has provided new updates on its coronavirus vaccine candidate, AZD1222, which it co-developed with University of Oxford and its spin-out company, Vaccitech. Notably, the company has reported a vaccine efficacy of 76% in a phase III trial of AZD1222 in the United States. The data also reflected 100% efficacy against severe or critical disease and hospitalization and 85% efficacy in symptomatic COVID-19 in participants aged 65 years and above.
Markedly, the latest primary efficacy analysis included the accrual of 190 symptomatic cases of COVID-19 from the 32,449 trial participants, an additional 49 cases compared with the previously announced interim analysis. Participants were randomized on a 2:1 ratio to receive the vaccine or placebo.
The U.S.Phase III trial, namely D8110C00001, was led by AstraZeneca and funded by the Biomedical Advanced Research and Development Authority (BARDA), part of the office of the Assistant Secretary for Preparedness and Response (ASPR) at the U.S.Department of Health and Human Services (HHS) in collaboration with the Department of Defense Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND) and the Army Contracting Command, and the National Institute of Allergy and Infectious Diseases (NIAID), part of the U.S.National Institutes of Health, per the company’s press release. The NIAID-supported COVID-19 Prevention Network (CoVPN) participated in the trial.
According to the company, the vaccine was well tolerated and no safety-related issues were identified. AstraZeneca aims to file for Emergency Use Authorization (EUA) of the vaccine in the United States. AZD1222 has been granted a conditional marketing authorization or emergency use in more than 70 countries.
However, AstraZeneca was caught up in a little controversy with regard to its Mar 22 data release. The data reflected that the company had reported an efficacy of 79% at preventing symptomatic COVID-19 and 100% efficacy at preventing severe disease and hospitalization. However, National Institutes of Health’s (NIH) Data Safety Monitoring Board (DSMB) doubted that the late-stage data released by AstraZeneca from a large-scale U.S. study on its COVID-19 vaccine may have included “outdated” information. Later on, AstraZeneca reported that the efficacy of 79% was based on a pre-specified interim analysis with a data cut-off of Feb 17, per the company’s official press release.
Other COVID-19 Vaccines’ Progress So Far
The first company to initiate human clinical trials of its coronavirus vaccine candidate in the United States — Moderna (MRNA - Free Report) — has again come up with several impressive updates relating to mRNA-1273.
In the most recent announcement, the company informed about dosing the first participants in the Phase 2/3 of the KidCOVE study of the mRNA-1273 in children aged six months to below 12 years in the United States and Canada. Moderna is also studying its COVID-19 vaccine in another phase II/III study — TeenCOVE — in adolescents aged 12-17 years. Furthermore, Moderna is also manufacturing booster vaccine candidates targeting different variants of coronavirus. In this regard, the company has started dosing patients with its modified COVID-19 vaccines in an ongoing phase II study.
Novavax (NVAX - Free Report) recently announced impressive updates on its protein-based COVID-19 vaccine candidate, NVX-CoV2373. The company’s vaccine candidate has delivered final efficacy of 96.4% against mild, moderate and severe diseases caused by the original COVID-19 strain in a pivotal Phase 3 trial in the U.K.
ETFs That Can Gain
The competition to come up with a vaccine is opening up near-term opportunities, making the biotech sector a prospective space for investments. Therefore, we discuss a few ETFs that provide exposure to AstraZeneca.
Firstly, let’s look at ETFs with the highest exposure to AstraZeneca that can gain on the positive development:
VanEck Vectors Pharmaceutical ETF (PPH - Free Report)
The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS US Listed Pharmaceutical 25 Index, which is intended to track the overall performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. PPH holds a basket of 25 stocks, with AstraZeneca occupying the seventh spot with 4.99% weight. It has AUM of $199.6 million, with an expense ratio of 35 basis points (bps) (read: Pharma ETFs in Focus Post Q4 Earnings).
The Cancer Immunotherapy ETF (CNCR - Free Report)
This ETF offers exposure to a basket of companies that develop therapies to treat cancer by harnessing the body's own immune system. Holding 32 stocks in its basket, it has around 3.39% exposure to AstraZeneca. The fund has AUM of $43.6 million. The product charges 79 bps in annual fees (read: A Guide to Biotech ETF Investing Amid the Coronavirus Crisis).
Other broader biotech ETFs that hold companies developing tests, vaccines and therapies for the coronavirus include:
iShares Nasdaq Biotechnology ETF (IBB - Free Report)
This fund seeks to provide exposure to U.S. biotechnology and pharmaceutical stocks and tracks the Nasdaq Biotechnology Index. Holding 281 securities, the fund has an AUM of $9.91 billion, with an expense ratio of 0.46% (read: ETFs to Tap Amgen's Drive for Cancer Deal).
SPDR S&P Biotech ETF (XBI - Free Report)
The fund seeks daily investment results, before fees and expenses, which match the S&P Biotechnology Select Industry Index. It holds about 192 securities in its basket. It has AUM of $6.79 billion and an expense ratio of 0.35% (read: 5 ETF Investing Areas for March to Boost Returns).
VanEck Vectors Biotech ETF (BBH - Free Report)
The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. It holds about 25 securities in its basket. Its AUM is $473.7 million andit hasan expense ratio of 0.35%.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>