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Pfizer, on the verge of falling after a spike of 30%

Pfizer Inc.’s gain of $48 billion in market value since late March, fueled by optimism over a successful COVID-19 vaccine, could soon encounter an obstacle.

Among the top three developers, Pfizer could be the first to reveal the results of the last stage of its trials to tens of thousands of people, along with its partner BioNTech SE. And stocks could eventually go down no matter what the data shows.

Goldman Sachs calls it a vaccine trade. During the intraday trading, investors hoard in stocks relating to the development of treatments and vaccines for the disease. Then they flee after results or updates appear to be good news. It happened to Gilead Sciences Inc. The drugmaker’s shares fell again as soon as its antiviral drug for COVID-19 got regulatory approval in early May. 

Chris Schott, an analyst at JPMorgan Chase & Co, stated that For Pfizer, the vaccine-driven breakthrough had been ahead of the fundamental opportunity. The bank’s clients were more pessimistic about Pfizer, he said.

The recently expanded late-phase study of Pfizer and BioNTech’s Messenger RNA vaccine to 44,000 patients will deliver data in the coming weeks. Pfizer is aiming for a regulatory filing on its vaccine in the United States as early as October. The late-phase data from Moderna Inc. and AstraZeneca Plc’s efforts with the University of Oxford are very close as well. Astra’s trial in the UK resumed after a break of less than a week after one participant fell ill.

Adam Barker, an analyst at Shore Capital Group Ltd., stated that buying before having the data is pretty risky. The next data readings will really tell the vaccine has worked or not. 

Pfizer did not immediately respond to a phone call and email seeking comment.

 

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