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Biotech ETFs in Focus on Covid Vaccines' Fall Rollout
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The FDA's advice to Pfizer (PFE - Free Report) , Moderna (MRNA - Free Report) and Novavax (NVAX - Free Report) for manufacturing single-strain jabs targeting the omicron subvariant XBB.1.5 should prove to be a victory for these vaccine makers. This particular strain made up about 40% of all Covid cases in the United States in early June, making it one of the most immune-evasive variants to date, per CDC data, as quoted on CNBC.
Advanced Development for In-Time Rollout
Amid pressures to distribute new shots by fall, Pfizer, Moderna and Novavax had already begun developing versions of their vaccines targeting XBB.1.5 months before the FDA's decision. Preliminary data presented by these companies indicates that their vaccines produce strong immune responses against all XBB variants.
Focus on Commercial Market
With fall moving closer, the United States plans to shift Covid vaccine distribution to the private sector, with the federal government's supply of free shots expected to be over. Pfizer and Moderna see this change as a chance to tap more distribution channels than they did under government contracts. This move also strengthens their position in the commercial market.
FDA Move is Crucial for Novavax
For Novavax, the commercial market is vital for its survival in 2023 and beyond. The company lagged its competitors in receiving U.S. approval for its Covid vaccine. It won only last year under emergency use. Now, with the FDA's strain specification, Novavax can pose decent competition to its Covid-19 vaccine peers Pfizer and Moderna.
Vaccine Hesitancy to Weigh on Revenues?
Despite the production of vaccines’ fall versions, Pfizer, Moderna and Novavax have varying revenue expectations for their Covid vaccines. Pfizer apprehends a weakening in sales due to less reliance on vaccines. Vaccine hesitancy continues to be a challenge.
Against this mixed backdrop, investors may follow the biotech and pharma ETFs closely.
ETFs in Focus
Pfizer has considerable exposure to First Trust Nasdaq Pharmaceuticals ETF (FTXH - Free Report) , Invesco Dynamic Pharmaceuticals ETF (PJP - Free Report) and Horizon Kinetics Medical ETF (MEDX - Free Report) . The stock also has a focus on dividend ETFs like First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report) and iShares Core High Dividend ETF (HDV - Free Report) .
Moderna has substantial exposure to biotech ETFs like ETFMG Treatments Testing and Advancements ETF (GERM - Free Report) , VanEck Biotech ETF (BBH - Free Report) and Invesco Nasdaq Biotechnology ETF (IBBQ - Free Report) .
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Biotech ETFs in Focus on Covid Vaccines' Fall Rollout
The FDA's advice to Pfizer (PFE - Free Report) , Moderna (MRNA - Free Report) and Novavax (NVAX - Free Report) for manufacturing single-strain jabs targeting the omicron subvariant XBB.1.5 should prove to be a victory for these vaccine makers. This particular strain made up about 40% of all Covid cases in the United States in early June, making it one of the most immune-evasive variants to date, per CDC data, as quoted on CNBC.
Advanced Development for In-Time Rollout
Amid pressures to distribute new shots by fall, Pfizer, Moderna and Novavax had already begun developing versions of their vaccines targeting XBB.1.5 months before the FDA's decision. Preliminary data presented by these companies indicates that their vaccines produce strong immune responses against all XBB variants.
Focus on Commercial Market
With fall moving closer, the United States plans to shift Covid vaccine distribution to the private sector, with the federal government's supply of free shots expected to be over. Pfizer and Moderna see this change as a chance to tap more distribution channels than they did under government contracts. This move also strengthens their position in the commercial market.
FDA Move is Crucial for Novavax
For Novavax, the commercial market is vital for its survival in 2023 and beyond. The company lagged its competitors in receiving U.S. approval for its Covid vaccine. It won only last year under emergency use. Now, with the FDA's strain specification, Novavax can pose decent competition to its Covid-19 vaccine peers Pfizer and Moderna.
Vaccine Hesitancy to Weigh on Revenues?
Despite the production of vaccines’ fall versions, Pfizer, Moderna and Novavax have varying revenue expectations for their Covid vaccines. Pfizer apprehends a weakening in sales due to less reliance on vaccines. Vaccine hesitancy continues to be a challenge.
Against this mixed backdrop, investors may follow the biotech and pharma ETFs closely.
ETFs in Focus
Pfizer has considerable exposure to First Trust Nasdaq Pharmaceuticals ETF (FTXH - Free Report) , Invesco Dynamic Pharmaceuticals ETF (PJP - Free Report) and Horizon Kinetics Medical ETF (MEDX - Free Report) . The stock also has a focus on dividend ETFs like First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report) and iShares Core High Dividend ETF (HDV - Free Report) .
Moderna has substantial exposure to biotech ETFs like ETFMG Treatments Testing and Advancements ETF (GERM - Free Report) , VanEck Biotech ETF (BBH - Free Report) and Invesco Nasdaq Biotechnology ETF (IBBQ - Free Report) .