Vaccine stocks sank Wednesday despite the companies winning Food and Drug Administration authorization for their updated Covid booster shots.
Specifically, the FDA signed off on Pfizer's and Moderna's bivalent vaccines targeting two strains of the Covid-causing virus — the original iteration and members of the omicron family, BA.4 and BA.5.
Analysts have been looking at the updated boosters as a way of lengthening the sales tailwind for Pfizer, its partner BioNTech and Moderna. Public health researchers see boosters as a way of preventing hospitalizations and deaths during a potential fall Covid surge.
"As we head into the fall season, we strongly encourage anyone who is eligible to consider receiving a booster dose with a bivalent Covid-19 vaccine to provide better protection against currently circulating variants," FDA Commissioner Robert Califf said in a written statement.
But on today's stock market, vaccine stocks collectively fell. Moderna stock took a 2.7% hit and closed at 132.27. Shares of Pfizer toppled 1.4% to 45.23. BioNTech stock skidded 1.7% to 144.64.
Will The FDA OK Boost Vaccine Stocks?
The authorization allows anyone two months out from their previous Covid shot — a primary series or a booster dose — to receive an updated Covid booster. Moderna's is allowed in adults, while the Pfizer and BioNTech shot will be used in people age 12 and older.
It's important to note, there's no human test data for these updated boosters. The FDA's authorization is based on a review of laboratory testing as well as human testing of a previously updated booster targeting the BA.1 sub-variant of omicron. BA.1 no longer accounts for any cases in the U.S. Pfizer and Moderna have not yet said when human data from the now-authorized updated booster will be available.
The model is similar to how the U.S. handles its annual flu vaccination campaign. Flu shots are tested in animals before launching broadly to people.
Boosters Widely Underutilized
Despite the broad availability of Covid shots, few people have taken advantage of Covid boosters today. Of those eligible, less than half of people in the U.S. have gotten their first booster shot, according to the FDA. Regulators previously signed off on a second booster for people age 50 and older. Of that group, roughly a third have gotten the second shot.
Meanwhile, vaccine stocks have also simmered down from their 2021 highs. Moderna and BioNTech shares began fizzling in September 2021. Pfizer started its downtrend after a December high.
But the updated boosters offer something new. The previous boosters were based on the first iteration of the Covid-causing virus, which appeared in late 2019. The updated boosters target sub-variants of omicron that currently make up a combined 92.3% of Covid cases in the U.S., according to the Centers for Disease Control and Prevention.
Next, the CDC has to sign off on the updated booster shots. The agency's experts are expected to meet Thursday.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
