Shares of vaccine maker BioNTech (BNTX.US), which produces vaccines in partnership with Pfizer (PFE.US), have already rebounded nearly 15% from their lows. The price rebound has been helped by incoming news that the vaccine will be available for children aged 6 months to 5 years. The two companies are about to apply for emergency approval for these vaccines from the US Food and Drug Administration (FDA), major news agencies such as The New York Times and The Washington Post reported.
Investors are not particularly surprised by the filing of the vaccine application, as the topic of vaccination for younger children has come up many times in the past. Clinical trials conducted in 2021, however, showed that low doses, were effective in children up to 2 years old, but were not as effective in older children between 2 and 5 years old. BioNTech and Pfizer therefore added a third dose to the clinical trials to fill this gap.
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Create account Try a demo Download mobile app Download mobile appInvestors obviously welcomed the news of BioNTech's success by buying shares in the German company, which is one of the main beneficiaries of the medical market situation created by the pandemic. The FDA approval of the vaccine in a new, younger age group has resulted in PFE.US and BNTX.US gaining a sizable new market. According to the Census Bureau, currently, about 6% of the entire US population is under the age of 5 (almost 20 million). FDA approval of the vaccine may also result in applying for similar approval in Europe and eventually on other continents, which may further broaden the group of potential customers.
If BioNTech and Pfizer hurry up and apply for marketing authorization, it is possible that the vaccine will be made available to children later this month. However, it is worth noting that as a result of the loosening of restrictions and an increase in the number of people vaccinated, the pandemic is beginning to recede into the background among investors, a fact also priced in by stock traders during the recent cascading sell-off of vaccine companies, during which shares in Biontech and many other covid companies fell by more than 50%.
