Biotech ETFs in Focus on Covid Vaccines' Fall Rollout
The FDA's advice to Pfizer PFE, Moderna MRNA and Novavax NVAX for manufacturing single-strain jabs targeting the omicron subvariant XBB.1.5 should prove to be a victory for these vaccine makers. This particular strain made up about 40% of all Covid cases in the United States in early June, making it one of the most immune-evasive variants to date, per CDC data, as quoted on CNBC.
Advanced Development for In-Time Rollout
Amid pressures to distribute new shots by fall, Pfizer, Moderna and Novavax had already begun developing versions of their vaccines targeting XBB.1.5 months before the FDA's decision. Preliminary data presented by these companies indicates that their vaccines produce strong immune responses against all XBB variants.
Focus on Commercial Market
With fall moving closer, the United States plans to shift Covid vaccine distribution to the private sector, with the federal government's supply of free shots expected to be over. Pfizer and Moderna see this change as a chance to tap more distribution channels than they did under government contracts. This move also strengthens their position in the commercial market.
FDA Move is Crucial for Novavax
For Novavax, the commercial market is vital for its survival in 2023 and beyond. The company lagged its competitors in receiving U.S. approval for its Covid vaccine. It won only last year under emergency use. Now, with the FDA's strain specification, Novavax can pose decent competition to its Covid-19 vaccine peers Pfizer and Moderna.
Vaccine Hesitancy to Weigh on Revenues?
Despite the production of vaccines’ fall versions, Pfizer, Moderna and Novavax have varying revenue expectations for their Covid vaccines. Pfizer apprehends a weakening in sales due to less reliance on vaccines. Vaccine hesitancy continues to be a challenge.
Against this mixed backdrop, investors may follow the biotech and pharma ETFs closely.
ETFs in Focus
Pfizer has considerable exposure to First Trust Nasdaq Pharmaceuticals ETF FTXH, Invesco Dynamic Pharmaceuticals ETF PJP and Horizon Kinetics Medical ETF MEDX. The stock also has a focus on dividend ETFs like First Trust Morningstar Dividend Leaders Index Fund FDL and iShares Core High Dividend ETF HDV.
Moderna has substantial exposure to biotech ETFs like ETFMG Treatments Testing and Advancements ETF GERM, VanEck Biotech ETF BBH and Invesco Nasdaq Biotechnology ETF IBBQ.
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Pfizer Inc. (PFE) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
Novavax, Inc. (NVAX) : Free Stock Analysis Report
Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports
First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports
iShares Core High Dividend ETF (HDV): ETF Research Reports
VanEck Biotech ETF (BBH): ETF Research Reports
First Trust NASDAQ Pharmaceuticals ETF (FTXH): ETF Research Reports
ETFMG Treatments, Testing and Advancements ETF (GERM): ETF Research Reports
Invesco Nasdaq Biotechnology ETF (IBBQ): ETF Research Reports
Horizon Kinetics Medical ETF (MEDX): ETF Research Reports