Last week, the UK became the first western country to begin the rollout of a COVID-19 vaccine. The Medicines and Healthcare products Regulatory Agency (MHRA) – the UK’s equivalent of the FDA – granted BioNTech (BNTX) and its partner Pfizer (PFE) a temporary emergency use authorization (EUA) for their COVID-19 mRNA vaccine BNT162b2.
Last month, the two companies announced the vaccine had showed a 95% success rate in preventing the coronavirus; Now 40 million BNT162b2 doses will be dispatched to the UK in 2020 and 2021.
H.C. Wainwright analyst Robert Burns reminds investors that while the vaccine’s UK approval constitutes the first EUA for BNT162b2, an FDA advisory committee is set to meet on December 10 to discuss BNT162b2’s U.S. fate.
Burns believes there is a “high likelihood that the committee shall recommend approval of BNT162b2 within several days of this meeting.” Additionally, a rolling review for BNT162b2 has already kicked off in Europe.
So good news, right? For the public, no doubt. But considering the implication for BioNTech, specifically, Burns is less effusive.
“From our vantage point,” the 5-star analyst opined, “The revenue trajectory remains difficult to forecast and the rife competition among vaccine-makers means that more aggressive Street expectations may prove unrealistic.”
BNT162b2 faces other issues on its journey to market – literally.
The company was expecting to ship 100 million vaccine doses globally this year but recently reduced that amount by half. The reason for the reduction, according to a Wall Street Journal report, was “that the scale-up of the raw material supply chain took longer than expected.”
Although Pfizer has said there have been no other new supply chain issues, Burns believes BNT162b2’s requirement for ultra-low storage temperatures – at -94°F for up to six months or at 36-46°F for up to five days – represents a “potential drawback” when compared to other vaccines’ storage needs.
As a result, Pfizer and BioNTech have had “to build out their logistical cold storage supply chain in order to address this potential limitation.”
Based on all the above, Burns rates BNTX a Neutral (i.e. Hold) without suggesting a price target. (To watch Burns’ track record, click here)
Burns’ colleagues have mixed opinions regarding BNTX’s expected trajectory. An additional 3 Buys and Holds, each, add up to a Moderate Buy consensus rating. The forecast is for shares to decline by 13% over the coming months, given the average price target clocks in at $111.17. (See BNTX stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
