Vaccine stocks Pfizer and Moderna could see some upside from their new Covid boosters, according to the September IBD/TIPP Poll.
More than half of the people surveyed say they are likely to get the updated booster shot. These shots aim to block the BA.4 and BA.5 sub-variants of omicron as well as the original strain. The companies launched them just after Labor Day.
Of that crowd, more than a third say they're "very likely" to seek out the new boosters. Unlike the last round of boosters, which were only available to people age 50 and older, anyone 12 and older can get the Pfizer shot two months after their last dose. The Moderna booster is available to adults.
Still, the most notable vaccine stocks remain under pressure. After bottoming out in June, Moderna stock joined a broad biotech rally through early August. Since then, however, shares have tumbled 29% as of Wednesday's close. Shares of Pfizer's partner, BioNTech, are now 21% off their August peak. Pfizer stock has fallen about 8% over the same period.
Pfizer stock slipped 0.5% to close at 45.94 Thursday. BioNTech sank 1.6% to 144.14. And Moderna dropped 2.5% to finish at 135.86.
Vaccine Stocks: Increased Booster Demand?
Demand for the updated Covid shots will likely outstrip the first generation of booster shots. In the August poll, a combined 49% of people surveyed had gotten a booster. In this month's survey, 57% of people said they would seek out the new Covid booster.
The new boosters block currently circulating strains of Covid, whereas the first booster iterations are based on the ancestral strain. Experts say that version hasn't circulated broadly since late 2019 or early 2020. Less bullish for vaccine stocks, about a third of people, 34%, say they won't get the updated booster, and 9% are unsure.
It's important to note that the updated boosters were particularly accelerated. Though they've received a number of authorizations globally, Pfizer and Moderna are still testing their new shots in people. The authorizations were based on laboratory tests as well as studies of earlier booster shots in people.
And there's also no guarantee the companies will see major revenue from these shots. Analysts following vaccine stocks currently call for Moderna's sales to fall by about half in 2023. They believe BioNTech's sales peaked in 2021 and will tumble for the foreseeable future. Pfizer's 2023 revenue is also expected to dive about 21%.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
