This COVID-19 Vaccine Stock Quietly Soared 75% In April: Is There More Upside Ahead?

Shares of BioNTech SE BNTX, which partnered with Pfizer Inc. PFE in successfully developing a vaccine against the coronavirus, have been gaining ground.

BioNTech's Price Action: BioNTech and its partner Pfizer received in mid-December authorization for emergency use of the BNT162b2 mRNA vaccine against the novel coronavirus that causes COVID-19.

BioNTech's shares, which rallied to a high of $131 ahead of the FDA decision, gave back part of the gains in a ‘buy-the-rumor, sell-the-news' move. The stock ended 2020 at $81.52, about 38% off the intraday high for the year.

The German vaccine maker's stock picked up momentum early in 2021, breaching the $100 psychological resistance level on Jan. 8 and trading in a $100-$120 range until early March.

The marketwide selloff in March did not spare BioNTech, with the stock dropping below $100 for a few sessions before climbing back again. The stock was locked in a lackluster phase until the end of March.

Come April, the trend began to change. In the very first session of April, the stock rose over 4% and moved steadily higher through the month. In April alone, the stock added 72.4%.

To put things in perspective, if an investor had invested $1,000 in BioNTech shares at the end of March, their investment would now be worth $1,909.46 (using the intraday high of $207.55 hit on Monday). This would mean nearly doubling the investment in a span of a month.

Related Link: Week Ahead In Biotech (May 2-8): ChemoCentryx Adcom, Ophthalmology Conference Presentations, Earnings Deluge

What's Behind The BioNTech Rally: The stock has been supported by the intermittent news flow regarding the company's vaccine.

In late March, the companies reported positive top-line results from a study evaluating the vaccine in adolescents.

On April 1, BioNTech and Pfizer reported data on BNT162b2 following six months of follow-up that confirmed its efficacy and safety.

The companies announced April 9 a request to the FDA to authorize expanded use of the vaccine in adolescents ages 12-15.

The FDA's decision to temporarily pause the use of Johnson & Johnson's JNJ vaccine also proved positive for BioNTech, which added about 7% on April 13 when the pause was announced.

In mid-April, the companies announced an agreement with the European Union to supply 100 million doses of BNT162b2, which is named Comirnaty in Europe, in 2021. With that, the total number of doses delivered to the EU is 600 million.

Last week, a request was submitted to the EU to expand conditional marketing authorization to adolescents in the EU.

What Lies Ahead For BioNTech Stock? BNT162b2 is expected to continue to boost BioNTech's top-line. Having delivered 200 million doses by the end of March, the company has signed orders for supplying 1.4 billion doses in 2021.

Pfizer and BioNTech plan to boost the manufacturing capacity for the vaccine to 2.5 billion doses by the end of 2021.

"BioNTech and Pfizer will be the standout leader in COVID-19 vaccination globally, with demand increasing for the 2.5Bn doses they are targeting to manufacture in 2021," SVB Leerink analyst Daina Graybosch said in a note.

With the second wave of the COVID-19 pandemic now sweeping across several nations, the companies have a lucrative opportunity. The companies have also proved the efficacy of the vaccine against variants.

Once the pandemic phase passes, the vaccine has scope for use in endemic setting.

More importantly, BioNTech is not a one-trick pony. The company has a broad oncology pipeline consisting of 13 product candidates.
Weighing in all the opportunities, further upside in the stock cannot be ruled out.

BNTX Price Action: At last check, BioNTech shares were rising 8.2% to $191.38.

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

Posted In: CoronavirusCovid-19BiotechHealth CareMoversTrading IdeasGeneral

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