Why Vaccine Stocks Pfizer, BioNTech, Moderna And Novavax Are Higher

Johnson & Johnson's (NYSE:JNJ) pain has proved to be gain for other vaccine companies, including BioNTech SE (NASDAQ:BNTX), Pfizer Inc. (NYSE:PFE), Moderna, Inc. (NASDAQ:MRNA) and Novavax, Inc. (NASDAQ:NVAX).

What Happened: The Food and Drug Administration and the Centers for Disease Control and Prevention announced it's recommending pausing of the use of J&J's single-shot coronavirus vaccine, attributing the decision on incidents of severe, atypical blood clots.

Following the news, shares of other vaccine developers are higher.

Incidentally, AstraZeneca PLC (NASDAQ:AZN), which is also facing issues with its vaccine, is moving to the downside. AstraZeneca's vaccine is yet to be authorized by the FDA, although it has received the regulatory nod in the U.K. and Europe, among other countries.

Related Link: Attention Biotech Investors: Mark Your Calendar For April PDUFA Dates

Why It's Important: The COVID-19 vaccine business is touted to be a multi-billion-dollar opportunity for the early entrants into the arena. Pfizer-BioNTech combo was the first to receive emergency authorization followed by Moderna.

Novavax is expected to release data from the Phase 3 trials in the U.S. and Mexico as well as final data from the U.K. leg of the Phase 3 trial in the second quarter. Approval is imminent, contingent on a positive readout.

With the COVID-19 disease most likely to pass from pandemic to endemic setting, these companies are targeting a steady stream of revenues from the vaccines. A setback to a rival, therefore, is perceived as positive for the rest.

Price Action: In premarket trading Tuesday:

• Pfizer shares were up 0.92% to $37.31.
• BioNTech was adding 2.39% to $124.43.
• Moderna was rallying 6.73% to $148.78.
• Novavax shares were jumping 7.03% to $188.
• J&J was losing 2.37% to $157.81.
• AstraZeneca was edging down 0.40% to $49.22.