Pfizer stock (NYSE:PFE) is currently up ~10% today on the back of the pharmaceutical giant announcing a potentially revolutionary product in the ongoing battle against COVID. Pfizer stated that medical trials have shown that their experimental antiviral pill reduces the risk of hospitalization and death by ~90%. The company also indicated that they would pursue regulatory approval for the novel pill as soon as possible.
New revenue stream
Despite the pill not being approved by regulators, countries are already acting on the news and moving to place early orders to secure the new product. The US is working to secure over a million courses of the pill, and the UK has already ordered 250,000 courses. Alongside Pfizer’s COVID vaccine, the pill could prove to be another game-changer in helping people across the world to return to normality, at the same time as boosting Pfizer’s revenues and in turn their stock performance.
Smashing the competition
Whilst Pfizer is soaring, their biggest competitors’ stock is currently crashing. Moderna (NASDAQ:MRNA) is trading over 30% down from their closing price two days. What happened? The first knock-out punch took place yesterday as Moderna announced poor Q3 financial results. The company missed earnings expectations and also lowered their vaccine sales forecast for the year. The second knock-out was the Pfizer announcement.
Another competitor, Merck (NYSE:MRK), is down 10% today, as their own version of the antiviral pill that already has UK regulatory approval has inferior trial results in comparison to Pfizer, with only 50% efficacy in reducing hospitalization and death.
Overall, Pfizer’s prospects are looking very positive. The company is expecting COVID vaccine sales of over $60 billion for this year and 2022. If you add the likelihood of mass adoption of their new antiviral pill, we expect Pfizer stock to continue their strong momentum and outperform the market significantly.