The vaccine race continues to heat up as companies seek approval from international regulators. While Novavax (NASDAQ:NVAX) celebrates its recent authorization from Indonesia’s government and Ocugen (NASDAQ:OCGN) seeks similar approval, early vaccine champion Pfizer (NYSE:PFE) is getting ready to take America’s vaccine response to the next level. The giant of big pharma is gearing up to start shipping out vaccine doses for children between ages five and 11. The company is still waiting on the thumbs up from the Centers for Disease Control (CDC), which is meeting this afternoon to discuss giving Pfizer the authorization. While we wait, PFE stock has been rising steadily.
What’s Happening With PFE Stock
This week began with the confirmation that Tuesday would mean the CDC’s official vote on administering Pfizer’s vaccine to children over age five. No official verdict has been handed down yet, but PFE stock has shot up by almost 5% today. Despite a downtick this morning, it quickly rebounded and has made steady upward progress.
As of this writing, PFE shares are up 5.35% for the week and almost 8% for the month. Early 2021 saw Pfizer emerge as an early hero of the vaccine race, gaining approval to administer its vaccine just ahead of Moderna (NASDAQ:MRNA). This children’s vaccine will likely be Pfizer’s competitive edge as Moderna’s rival product is facing regulatory setbacks.
Why It Matters
As Pfizer heads into 2022, it is on track to achieve considerable growth. There are several reasons why PFE stock is likely to shoot up even more.
Firstly, no one should underestimate the impact of Pfizer’s vaccine for children. Many parents have been anxiously awaiting exactly that, as schools have reopened and social activities have resumed and increased. As parents head back to work, it is of increasing importance for schools to be able to operate. As Vox reports, the ability to vaccinate children against Covid-19 will likely prove a game changer for both families and schools. While the necessary authorization hasn’t been granted yet, the company’s readiness to start shipping vaccines indicates that they do not anticipate any regulatory roadblocks.
Additionally, earnings season has brought good news for investors concerned with PFE stock. Reports have indicated that not only is the company on track to beat estimates for the second year in a row but also that it has raised sales forecasts for the year ahead. In a recent earnings call, Pfizer stated it expects to see its revenue increase over the course of 2022 by $36 billion. That’s a 7.5% increase from the previous year. Vaccine sales in the third quarter of 2021 totaled $13 billion, surpassing analysts’ predictions by more than $2 billion.
What It Means
Even if vaccine sales do not increase by the forecasted amounts in 2022, Pfizer will still see plenty of sales. Unless something drastic happens, the company is about to beat all other competitors to market with a product that almost everyone wants. Moderna was its main competitor in the vaccine race heading into 2022, but a year later, Pfizer is safely in the lead.
Cases are declining, and every public health official wants to see this trend continue. A big part of that will be ensuring that young children are vaccinated. And Pfizer is the company best positioned to make that happen. It’s possible that 2022 vaccine sales may even exceed Pfizer’s price forecast, depending on how soon other children’s vaccines are made available.
In the short term, we’ve seen PFE stock rise purely on speculation so far. When the CDC grants Pfizer the approval it seeks, it will shoot up even further. This is absolutely a stock to watch closely.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
