Is a New Covid Vaccine Coming? Here’s What That Could Mean for Pharma

Key Takeaways

• New Covid vaccines will be available in the U.S. this fall
• Pfizer, Moderna and Novavax all have updated single-strain shots
• Public health officials expect uptake to be low

In June, the FDA advised drugmakers to update the Covid booster shots to target XBB.1.5, which is the predominant coronavirus strain in the United States. The goal was to give drugmakers enough time to make the booster available in the fall. So far, the major players all seem to be on target.

Things change so fast. Be ready to profit from the latest and greatest in technology with the Q.ai Emerging Tech Kit. Our AI identifies leading stocks in this space and leverages a reinforcement-learning hybrid trading strategy with sharp sector rotations that maximizes risk-adjusted returns.

Download Q.ai today for access to AI-powered investment strategies.

We still need new Covid vaccines?

This year, we have the the omicron subvariant XBB.1.5 to guard against. It’s the most immune-evasive strain of Covid so far. But it’ll likely be a tough sell to get folks boosted this year. CDC data indicates that just 17% of the U.S. population has gotten the bivalent boosters approved last September.

April poll data indicated that more than half of the public said they would likely get an annual Covid shot if it was administered like the flu shot. A third of that group would be “very likely” to get the jab. With that in mind, Pfizer is getting ready to adjust to an annual cadence, developing versions of its shot that boost protection for an entire year.

While health officials seem aligned that Covid vaccines are going to be part of routine health maintence moving forward, not everyone agrees we’re moving to a “flu” model with annual vaccines. Some advisors to the FDA have raised concerns about shifting to yearly Covid vaccines until we know for sure that the virus is seasonal.

How are Pfizer, Moderna and Novavax performing?

The latest round of boosters aren’t necessarily giving these companies, well, a boost. But there are easons to keep an eye on Pfizer, Moderna and Novavax as they continue to develop vaccines.

Moderna has begun its application process for FDA approval of its respiratory syncytial virus (RSV) shot for older adults. Moderna’s vaccine was nearly 84% effective against RSV in testing. Being a leader in the RSV vaccine would be a win for Moderna (and for shareholders).

Pfizer, meanwhile, just reported disappointing numbers, but said it’s prepared to cut costs if necessary. By contrast, Novavax’s stock price jumped after Canada agreed to pay $350 million for forfeiting Covid vaccine doses that were previously scheduled for delivery.

For all of these companies, longer-termperformance will depend on how they pivot to treatments for things other than Covid, and also on what Covid numbers look like this fall and winter.

The bottom line

Keep an eye on Covid vaccine news as we move into cold and flu season. Also watch out for other (non-Covid related) innovations from the likes of Moderna.

Speaking of innovation: Make sure you never miss a beat with the Q.ai Emerging Tech Kit. Stay ahead of the market with strategic, high-risk, high-reward investments in all things cutting edge.

Download Q.ai today for access to AI-powered investment strategies.