August 26, 2021 – After the U.S. Food and Drug Administration granted full approval to the Pfizer-BioNTech COVID-19 vaccine for people ages 16 and up, the Pfizer (PFE) shares gained 2.5% and the BioNTech (BNTX) stock jumped 9.6%. According to CNN Business, while vaccines aren’t the most profitable product for pharmaceutical companies, the “scale of the pandemic is generating tons of revenue.”
These stock jumps come after a 30% climb for Pfizer and a 27% climb for BioNTech since December, after the vaccine was approved for emergency use authorization from the United Kingdom, which was in the beginning of a global immunization effort.
Morningstar analyst Karen Anderson forecasted sales of the Pfizer vaccine reaching $35 billion in 2021 and $39 billion.
“The FDA has now reviewed six-month safety data from thousands of patients in the phase 3 trial. This could encourage some individuals who were uncertain about the long-term safety of the vaccine to get vaccinated,” Anderson said.
According to the report, full FDA approval will also pave the way for additional vaccine mandates. Public and private organizations who wish to mandate vaccinations now have the leverage to do so.
In addition to Pfizer and BioNTech, investors are also jumping on travel stocks and movie theaters after the FDA approval. Air travel companies American Airlines jumped 3.3% and Delta Airlines rose 2.9%, while hospitality – Marriot (MAR) increased by 2.3% – and entertainment companies – AMC Entertainment (AMC) by 7% and Cinemark (CNK) by 8% – have seen a rise in stocks as well.