COVID Vaccine Makers Under Pressure As White House Plans To End Coverage

The Fly

Contributor:
The Fly
Visit: The Fly

As COVID-19 cases drop and more activities resume, officials are now working to map out transition.

Shares of COVID-19 vaccine makers such as Pfizer (PFE), BioNTech (BNTX) and Moderna (MRNA) are under pressure on Thursday following a news report saying that the White House is planning for an end to vaccination and treatment coverage, moving more control of pricing and coverage to the healthcare sector.

END OF COVERAGE: 

The Biden administration is planning for an end to its practice of paying for COVID-19 shots and treatments, shifting more control of pricing and coverage to the healthcare industry in ways that could generate sales for companies – and costs for consumers – for years to come, The Wall Street Journal’s Stephanie Armour reported. The Department of Health and Human Services plans to hold a planning session on Aug. 30 that will bring together representatives from drugmakers, pharmacies and state health departments with a stake in a COVID-19 treatment industry, the author noted.

Both the Trump and Biden administrations always planned to shift the bill for COVID-19 shots and treatments from the federal government to individuals eventually. With COVID-19 cases dropping, more activities resuming and funding for the pandemic response running short, officials are now working to map out that transition, the publication added.

Publicly traded companies in the healthcare space include CVS Health (CVS), Centene (CNC), Cigna (CI), Health Net (HNT), Humana (HUM), Molina Healthcare (MOH), Elevance Health (ELV), UnitedHealth (UNH) and WellCare (WCG), while publicly traded companies with COVID-19 vaccines approved in the U.S. include Moderna, Johnson & Johnson (JNJ), and Pfizer and BioNTech.

COVID VACCINE MARKET SHARE: 

On Wednesday, Cowen analyst Yaron Werber initiated coverage of BioNTech with a Market Perform rating. The company’s Comirnaty is likely to retain its 60% share of the COVID-19 vaccine market and as the endemic phase rolls out, its volumes to mirror annual flu trends, Werber told investors in a research note. BioNTech’s “deep” oncology pipeline is innovative “but requires validation and is still early in development,” the analyst added. Werber prefers better visibility on long-term Comirnaty and pipeline potential to get positive on the shares.

PRICE ACTION: 

In Thursday afternoon trading, shares of Pfizer have dropped about 1.6% to $48.45, BioNTech has slipped almost 2% to $149.06, and Moderna’s stock has slid about 5% to $150.64. Also lower, shares of Johnson & Johnson have dropped almost 1% to $166.27.  

Originally Posted August 18, 2022 – COVID vaccine makers under pressure as White House plans to end coverage

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from The Fly and is being posted with permission from The Fly. The views expressed in this material are solely those of the author and/or The Fly and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.

Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.