Vaccine Stocks are Omicron Variant Winners

vaccine stocks

The new Omicron variant of the coronavirus gave the stock markets a shock on Friday. Almost all stocks came under pressure, with the exception of stay-at-home stocks and, of course, vaccine stocks. Today I would like to take a look at the various vaccine stocks. The focus here: who will come out ahead as a result of the new virus variant?

In total, there are six vaccines from Europe and the U.S. which have been approved or are about to be approved, and whose manufacturers are listed on the stock market:

mRNA Vaccines From BioNTech and Moderna Have a Big Advantage

BioNTech (NASDAQ:BNTX)  and Moderna (NASDAQ:MRNA) have taken a big piece of the sales pie this year with their novel mRNA vaccines. Both vaccines continue to show the highest efficacy with few side effects, and both companies have performed well this year. 

In addition, they have a significant advantage with respect to the omicron variant. They can adapt to the specific properties of new variants within a relatively short time (a few weeks to a few months). For traditional vaccines, adaptation takes longer.

For this reason, these two vaccines in particular are likely to be among the winners of vaccine stocks. Especially if further booster vaccinations will be necessary for combating the Omicron variant of the virus. I expect both companies to do brilliant business in the next few years. If they put the money into their own research pipelines, the success could be more broadly based in a few years.

AstraZeneca and Johnson & Johnson are not Vaccine Investments

The AstraZeneca (NASDAQ:AZN) and Johnson & Johnson (NYSE:JNJ) vector vaccines have lost significant traction in Germany, but continue to be used internationally.

However, both AstraZeneca and Johnson & Johnson (J&J) are very large pharmaceutical companies. The effect of vaccines on overall business is rather slight. For example, J&J also has tens of billions of dollars in medical device sales. Both are very solid stocks, but I don’t see them as vaccine investments.   

Novavax and Valneva “Dead Vaccines” Nearing Approval

More interesting as vaccine investments are the shares of the vaccine newcomers Novavax (NASDAQ:NVAX) and Valneva (NASDAQ:VALN). Both companies focus on conventional inactivated or “dead” vaccines and have presented good results from the third phase of clinical trials. These will be approved in Europe shortly.

It is possible that these two vaccines will convince at least some of the skeptics who have so far been reluctant to get the vaccine due to fear of the novel mRNA vaccines. 

In any case, it would be desirable to get out of the pandemic as quickly as possible. Compared to BioNTech and Moderna, I see Novavax and Valneva as more speculative. This is also reflected in the even higher price fluctuations of these stocks in some cases.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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