On the morning of Nov. 20, shares of Germany-based biotechnology company BioNTech SE (NASDAQ:BNTX) are pushing higher on heavy volume. Further, the BNTX stock price is smashing through the $100 barrier. What’s all the fuss about?
In a time when a second — or even a third — wave of the novel coronavirus is threatening people’s health and well-being, the call for an approved Covid-19 vaccine is stronger than ever.
At the same time, investors are excited about BioNTech’s collaboration with a very famous American drugmaker. They’re equally enthused about that drugmaker’s recent application for U.S. Food and Drug Administration (FDA) approval of a Covid-19 vaccine.
There’s no guarantee of an FDA approval. Therefore, there’s a measure of speculation involved if we place our bets on BNTX stock. Nonetheless, the excitement is building, and BioNTech could be part of a major medical breakthrough in the near future.
BNTX Stock at a Glance
As I suggested earlier, $100 is a significant level for BNTX stock traders. This price point was a resistance level at least three times in 2020, as the bulls failed to break and hold $100 in March, July and October.
Will November be the month when the bulls finally prevail? With the news that we’ll examine today, the probability of success seems higher now than it was in previous months.
The 52-week range of $20 to $115 suggests that BNTX stock is a fast mover in both directions. Hence, don’t expect this to be a “slow but steady” type of investment. This stock is prone to sharp spikes, so be prepared for that.
Yet, that’s the name of the game when it comes to biotech stocks. This class of stocks is highly news-dependent. Fortunately, the news has been highly encouraging lately for BioNTech and its shareholders.
Highly Effective Vaccine Candidate
The words “highly effective” perfectly encapsulate the Covid-19 vaccine candidate developed by BioNTech and pharmaceutical giant Pfizer (NYSE:PFE).
It’s not every day that two companies’ good news will actually lift the entire stock market. Yet, this happened on Nov. 18 when BioNTech and Pfizer’s vaccine candidate, known as BNT162b2, proved to be highly effective against Covid-19 just 28 days after the first administered dose.
How effective? Impressively, BNT162b2 was shown to be 95% effective overall. Furthermore, the vaccine candidate demonstrated an effectiveness of more than 94% among the elderly, which is significant because this demographic is particularly at risk of severe illness from Covid-19.
Amazingly, in the clinical trial under consideration, only 170 confirmed Covid-19 infections were found in 43,000 participants. Plus, no “serious” safety concerns were observed during this trial.
A Critical Step
Basically, by investing in BioNTech you’re also hitching your wagon to Pfizer, which isn’t a bad thing at all. Association with a drug-making giant means access to resources that smaller companies generally wouldn’t have access to.
But wait, it gets even better. On Nov. 20, Pfizer and BioNTech announced that they’re planning to request emergency-use authorization (EUA) from the FDA for BNT162b2.
This is significant because EUA is like a fast track toward approval for, and public access to, a drug under consideration. In the case of BNT162b2, EUA would mean that the vaccine candidate could be available to high-risk patients by mid-December.
Uğur Şahin, a co-founder of BioNTech, emphasized the significance of seeking EUA for BNT162b2. “Filing for Emergency Use Authorization in the U.S. is a critical step in making our vaccine candidate available to the global population as quickly as possible,” Şahin explained.
The Takeaway
Even with the highly encouraging developments, prospective BNTX buyers should know that FDA approval isn’t guaranteed.
Nevertheless, with a powerful partner like Pfizer and an urgent call for a rapidly available Covid-19 vaccine, the prospects look good for BNT162b2 and for BioNTech.
BNTX stock currently has a “B” rating in my Portfolio Grader.
On the date of publication, Louis Navellier had a long position in PFE. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
