On November 9 the Pfizer share price not only received a shot in the arm from the company’s own groundbreaking COVID-19 vaccine news. It also boosted world stock markets as well as the Pfizer share price. Part of the enthusiasm for the 90% effective / store at -70 centigrade vaccine was clearly the relief of the announcement marking the beginning of the end of the pandemic, both in terms of victims and economies.
The news could be even more of a breakthrough if as Pfizer has promised it can turn the vaccine into a powder, sidestepping the ultra cold storage issue. However, digging deeper into the news it could be argued that it raises as many questions as it answers for the Pfizer share price. Who will win the COVID-19 vaccine race, as well as what the financial benefits may be to Pfizer shares?
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CEO Albert Bourla sells Pfizer shares
One of the events that added spice to the Pfizer’s vaccine news was the simultaneous sale on the day of $5.6m worth of Pfizer shares by the CEO of the company. Given the way that share dealings by company executives are one of the most important signals to investors, the timing here for the PFE share price was unfortunate to say the least. In fact, Pfizer said that the deal had been set up as long ago as August, via an automated price limit.
However, the fact that the stock only rose 15% at the peak on the day can be explained by the way that the Pfizer shares sale by the CEO damaged sentiment, albeit inadvertently. Nevertheless, rather than sentiment surrounding the news, it was the prospects for the company after the development of the vaccine which were key for investors.
How much could Pfizer shares gain from a COVID-19 vaccine?
There are two key factors for Pfizer with regard to a COVID-19 vaccine. The first is how effective the vaccine is itself. But perhaps more importantly in the wake of Moderna’s 94.5% effective vaccine, whether the COVID-19 vaccine battle will become a race with two or even more horses? If this is the case the estimates in terms of earnings could become far more complex than they may appear currently.
Current estimates are that Pfizer and partner BioNTech could make up to 1.3bn vaccine doses by the end of 2021. This may make up for the fact that aside from a COVID-19 vaccine the Pfizer share price has been pressured by year on year sales actually declining over the past six quarters. The prospect of this slide being halted could boost Pfizer shares, if the competition from subsequent vaccines such as the latest from Moderna do not undermine its offering.
Pfizer shares need a COVID-19 vaccine boost
While the arrival of its COVID-19 vaccine is welcome, it is clear that it is timely as well. Across Pfizer’s portfolio in recent years we have seen blockbuster drugs fail relative to rivals. This was particularly underlined in the summer of 2020 with the relative disappointment associated with its breast cancer test Ibrance relative to that of rival Eli Lilly.
How to trade Pfizer shares
Open a live or demo account with ATFX to get started today. Trade shares on leverage, take up a long or short position when trading with CFDs and make potential gains from price movements.
1. Register for an account or log in to your existing account
2. Open MT4 either on your desktop or mobile
3. Search for Pfizer shares in the market watch or symbols window
4. Choose your position size
5. Hit buy or sell, and then confirm the trade
PFE share price daily chart
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