Covid Vaccine Breakthrough: the Morningstar View

Morningstar analyst Damien Conover looks in detail at the latest vaccine developments from AstraZeneca and Pfizer/BioNTech

Damien Conover 24 November, 2020 | 9:11AM
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Pfizer covid vaccine

AstraZeneca/Oxford

Following excellent data from Pfizer/BioNTech and Moderna, AstraZeneca (AZN) and partner Oxford University reported favourable phase 3 data on Covid-19 vaccine AZD1222 with an efficacy rate of 90% (low dose) and 62% (full dose) with no major safety issues observed with the initial data cohort. At the low dose, the efficacy looks fairly similar to competitor data, albeit slightly lower than the 94%-95% efficacy reported by others. We are increasing the vaccine’s probability of approval to 90% but given the firm’s commitment to pricing the vaccine at a non-profit level, we don’t expect any impact to Astra’s fair value estimate. However, the quick development of the vaccine reinforces the firm's innovative power and wide moat. With the likely authorisation of a third vaccine, we expect global demands will be more easily satisfied over the next few years.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AstraZeneca PLC8,942.00 GBX-0.60Rating
GlaxoSmithKline PLC1,424.60 GBX0.27Rating
Johnson & Johnson163.83 USD0.07Rating
Pfizer Inc42.92 USD-0.56Rating
Sanofi SA85.53 EUR0.49Rating

About Author

Damien Conover  is a guest author