Pfizer Coronavirus Vaccine and The Economy
"Pfizer stock surged on Monday after its BioNTech (BNTX)-partnered coronavirus vaccine proved more than 90% effective in a Phase 3 study. Pfizer (PFE) and BioNTech tested their experimental coronavirus vaccine in 43,538 participants who had no prior exposure to SARS-CoV-2, the form of coronavirus that causes Covid-19. At the first interim analysis, conducted Sunday, researchers found 94 confirmed cases of Covid-19.
On the stock market, Pfizer stock jumped 7.7% to 39.20. Shares of partner BioNTech launched 13.9% to 104.80. Pfizer stock briefly topped a buy point at 39.55 out of a flat base.
The 94 confirmed cases of Covid-19 were split between vaccinated participants and those who received the placebo, Pfizer said to a news release. This puts the effectiveness rate above 90% a week following the second dose. Currently, Pfizer and BioNTech predict they can make up to 50 million doses of the coronavirus vaccine in 2020 and up to 1.3 billion doses in 2021. The U.S. government has a deal with the companies for 100 million doses of a coronavirus vaccine with an option to buy an additional 500 million.
On Monday, UBS chief U.S. economist Seth Carpenter said that Pfizer's coronavirus vaccine data showing more than 90% effectiveness suggests an accelerated recovery of service-sector activity. Previously, UBS expected the pace of service-sector healing to pick up in the second half of 2021. Now Carpenter says it might start as soon as March."