As the fall approaches, Covid variant BA.2.86 cases are on the rise. This sparked a brief rally in BioNtech (BNTX), Pfizer (PFE), and Moderna (MRNA).
Investors should not expect a sustained uptrend in the rally. People are skeptical that the vaccine provides long-lasting protection.
Conversely, Paxlovid, an antiviral drug from Pfizer, has strong prospects. Expect billions in revenue from Paxlovid sales for the flu season.
In Q2 2023, Moderna posted sales of its Covid shot falling by 94%. The weakness is too much of a headwind. Shareholders will need to depend on its mRNA platform to target other diseases. For example, cancer treatment has potential growth prospects for Moderna. Vaccines for RSV and other diseases may fare better than the Covid market.
The Covid pandemic ended but the return of rising cases is increasingly likely. Susceptible people, based on their age or poor health history, are candidates for the BNTX or Moderna vaccine. Since it is not a strong enough demand, play the vaccine rally by trading the uptrend. Before traders take profits, close the position when the stock rips higher. Re-enter a position at lower prices, and repeat the above trading pattern.
