The COVID-19 Vaccine Stocks

by Fred Fuld III

Based on data as of April 28 from the CDC, over 142 million Americans have received one dose of the COVID-19 vaccine and more than 90 million have been fully vaccinated. This amounts to about 68% of those over 65, 38% of those over 18, and approximately 30% of the U. S. population.

The big players in the coronavirus vaccine arena are Pfizer (PFE) which is in partnership with BioNTech (BNTX), Moderna (MRNA), Johnson & Johnson (JNJ), and AstraZeneca (AZN). Of course, there are a lot of smaller biotech companies involved in COVID-19 testing, treatment, and cures.

The first vaccine, a two-dose variety, was created by the Pfizer and BioNTech joint venture. Pfizer, with a market cap of $215 billion,trades at 22.6 times trailing earnings and 12 times forward earnings. It pays a generous yield of 4.04%. The company raised its dividend by 2.6% in January of this year, and has raised its dividend every year for over ten years.

BioNTech is a German based biotechnology company with a market cap of $46 billion. Trailing earnings have been negative, but the forward price to earnings ratio is 19.7. The stock does not pay a dividend.

Moderna was close on their heels with its own two-dose vaccine. This $70 billion company has a forward P/E ratio of 8.7 and has no dividends.

Johnson & Johnson subsequently released a one-dose vaccine, however, health issues were raised about the vaccine relating to blood clots affecting a very small number of people, plus there was a contamination issue relating to blood clots. J&J trades at 29 times trailing earnings and 17 times forward earnings. The dividend yield is a healthy 2.62%. The company recently announced a 4.95% increase in the dividend payout beginning in June.

Finally, the British company AstraZeneca has a vaccine but it is not yet approved by the U.S. Food and Drug Administration. For far, its vaccine has brought in $275 million in sales. The company has a market cap of $135 billion, a trailing P/E ratio of 42 and a forward P/E ratio of 21. The forward annual dividend yield is 2.7%. The dividend is paid semi-annually.

Maybe one of these stocks can protect your portfolio.

 

Disclosure: Author owns PFE.

 

Stocks in the Race for the COVID-19 Vaccine

by Nkem Iregbulem

Since the start of the global coronavirus pandemic, various U.S. biotechnology companies have entered the race to develop COVID-19 therapies and vaccines. To aid and accelerate the development, manufacturing, and distribution of a COVID-19 vaccine, the U.S. government initiated a public-private partnership called Operation Warp Speed. This partnership hopes to deliver 300 million doses of a successful vaccine by January of next year. To achieve this goal, Operation Warp Speed selected eight companies with promising vaccine candidates to receive government funding — namely, Johnson & Johnson, AstraZeneca-University of Oxford, Pfizer-BioNTech, Moderna, Merck, Vaxart, Inovio, and Novavax.

Investing in biotechnology companies with a foot in the vaccine race may be financially worthwhile if certain candidates prove successful in their efforts to develop a safe and effective COVID-19 vaccine. In fact, the stock prices for many of these companies fighting against the coronavirus pandemic are already trading near record highs. Your options include Moderna (MRNA), Inovio Pharmaceuticals (INO), Novavax (NVAX), Vaxart (VXRT), and Sorrento (SRNE). All of these stocks are traded on the NASDAQ exchange.

Your first option is Moderna (MRNA), a biotech company primarily focused on discovering and developing therapeutics and vaccines based on messenger RNA, or mRNA. These technologies are designed to handle infectious diseases, immuno-oncology, rare diseases, autoimmune and cardiovascular disease. In January of this year, Moderna announced it had started developing its own COVID-19 vaccine, named mRNA-1273. In late July, the company’s vaccine candidate entered Phase 3 trials with the launch of a 30,000-subject trial. This progress puts Moderna ahead of many other companies in the race for the vaccine. Founded in 2010 and headquartered in Massachusetts, Moderna has a market cap of $27.51 billion and does not pay a dividend. Its stock has a price-to-sales ratio of 474.82 and a price-to-book ratio of 16.76. As of its most recent quarter, Moderna has $1.22 billion in total cash and $151.84 million in total debt. With its revenue decreasing each fiscal year since 2018, the company faces a negative 3-year revenue growth rate of -17.80%.

Another vaccine stock to pay attention to is Inovio Pharmaceuticals (INO), a biotechnology company that discovers, develops, and commercializes synthetic DNA medicines and vaccines to treat and protect against HPV-associated diseases, infectious diseases, and cancers. The company is developing its very own DNA-based COVID-19 vaccine candidate, INO-4800. Inovio’s INO-4800 is currently in Phase 1 trials in the U.S., and a Phase 2/3 trial is expected to begin this summer. Founded in 1983 and based in Plymouth Meeting, Pennsylvania, Inovio has a market cap of $3.07 billion and does not pay a dividend. Its stock has a high price-to-sales ratio of 786.00 and price-to-book ratio of 16.67. As of its most recent quarter, Inovio has $270 million in total cash and $98.52 million in total debt. Inovio has seen decreasing revenue each fiscal year since 2017, contributing to its negative 3-year revenue growth rate of -51.19%.

You might also consider Novavax (NVAX) — founded in 1987 and headquartered in Gaithersburg, Maryland. The late-stage biotechnology company focuses on discovering, developing, and commercializing vaccines to prevent a wide variety of infectious diseases. Some of its current vaccine candidates are geared towards influenza and RSV. In January, it announced its intention to develop a vaccine — called NVX-CoV2373 — to treat coronavirus. Novavax has a market cap of $9.15 billion and does not pay a dividend. Its stock trades at 34.13 times forward earnings and has a high price-to-sales ratio of 238.50. As of its most recent quarter, the company has $237.36 million in total cash and $331.87 million in total debt. Novavax has a negative 5-year revenue growth rate of -9.45% but a better 3-year revenue growth rate of 6.72%.

Vaxart (VXRT) is another biotech company in the race for a coronavirus vaccine. Founded in 2004 and based in South San Francisco, the clinical-stage company discovers, develops, and commercializes orally administered recumbent vaccines to treat infected patients around the world. This past January, Vaxart announced the development of its COVID-19 vaccine candidate: a tablet vaccine. Its other candidates include influenza, norovirus, and RSV vaccines.The company has a market cap of $992.76 million and does not pay a dividend. Its stock has a high price-to-sales ratio of 44.56 and a price-to-book ratio of 32.74. As of its most recent quarter, Vaxart has $29.86 million in total cash and $2.13 million in total debt. The company faces a negative 5-year revenue growth rate of -29.71% but enjoys a 3-year revenue growth rate of 1.69%.

Finally, you might also consider Sorrento (SRNE), a clinical-stage biotechnology company that focuses on developing immunotherapies for cancers, autoimmune, inflammatory, and neurodegenerative diseases. The company has teamed up with Mount Sinai Health System to develop an antibody therapy — named COVI-SHIELD — to target the COVID-19 infection. This product would deliver three antibodies that would serve as a “protective shield” against the virus. Founded in 2006 and headquartered in San Diego, Sorrento has a market cap of $2.05 billion and does not pay a dividend. It trades at 1.71 times forward earnings. Its stock has a high price-to-sales ratio of 46.05 and a price-to-book ratio of 20.28. As of its most recent quarter, the company has $21.9 million in total cash and $255.01 million in total debt. Sorrento enjoys a 5-year revenue growth rate of 52.39% and an even better 3-year revenue growth rate of 56.81%.

Let’s hope we get a vaccine and cure soon.

Disclosure: Author owns MRNA.