Top 3 Benefits Moderna is above Pfizer and AstraZeneca

Pfizer (NYSE: PFE) probably the first pharmaceutical manufacturer with a partner BioNTech (NASDAQ: BNTX)to obtain a U.S. Emergency Use Authorization (EUA) for a coronavirus vaccine. AstraZeneca (NASDAQ: AZN), which plans to produce up to 3 billion doses next year, could distribute more doses of COVID-19 worldwide than any other company.

Do these leadership positions mean? Modern (NASDAQ: MRNA) do you play the second violin in the coronavirus vaccination competition? Not for investors. Here are three main advantages that Moderna has over Pfizer and AstraZeneca as well.

Personal protective equipment researcher holding a vaccine vial with another researcher in the background

Image source: Getty Images.

1. No sharing required

Many of us in kindergarten were taught that it was good to share – and our kindergarten teachers were right. However, in the biopharmaceutical world, profit sharing may result in slower growth. Both Pfizer and AstraZeneca will share the rewards of their COVID vaccine.

Pfizer, as mentioned earlier, teamed up with BioNTech on the coronavirus vaccine labeled BNT162b2. The major pharmaceutical company forced more than $ 72 million in cash for the partner and bought a $ 113 million stake in German biotechnology. BioNTech is also eligible to receive milestone payments of up to $ 563 million. The two companies did not disclose how the proceeds and profits from any sale of BNT162b2 would be distributed, but Pfizer will certainly not raise all the money earned by the vaccine.

AstraZeneca has developed and distributed the experimental vaccine AZD1222 COVID-19 in collaboration with the University of Oxford. Financial details of the cooperation were not provided. However, you can bet that Oxford will receive some level of royalties from any sale of the vaccine.

Meanwhile, Moderna is the full owner of the COVID-19 vaccine candidate, mRNA-1273, and does not have to share any revenue or profits from the sale of the vaccine. Specified, Arbutus Biopharma owns a patent for the lipid nanoparticle (LNP) technology previously used by Moderna. However, Moderna has publicly stated that mRNA-1273 does not use the technology covered by Arbutus ’patent.

2. Platform options

If AstraZeneca gains official approval for AZD1222, the company has no other vaccine candidates who would use similar technology. The same is true of Pfizer. However, the good news about Moderna mRNA-1273 may promise good for other lines of biotechnology.

Moderna hopes to translate the commercial success of mRNA-1273 into a full-fledged mRNA (messenger RNA) platform. In addition to mRNA-1273, the company’s line currently includes an additional 12 mRNA vaccines and therapies in clinical trials. Moderna believes he could extend that number to up to 50 clinical-stage programs once the expected big dollars in mRNA-1273 begin.

Believe it or not, CEO of Moderna, Stephane Bancel, believes biotechnology could even become the world’s largest vaccine manufacturer in the next four years. This view may be too optimistic, but Moderna needs to grow at a much faster rate than AstraZeneca or Pfizer because of its platform capabilities.

3. Size

Last – literally the least – is Moderna’s sizeable advantage over Pfizer and AstraZeneca. You may be thinking, “What’s the benefit?” After all, Pfizer has a market cap in excess of $ 200 billion. AstraZeneca’s market cap is close to $ 140 billion. Moderna is relatively small, with a $ 50 billion market cap in the ballpark. However, the smaller size of the Moderna is actually a big advantage.

Not surprisingly, Moderna’s stock growth in 2020 was much better than the performance presented by AstraZeneca and Pfizer. This is because the positive developments of mRNA-1273 moved the needle much better for Moderna than the similar positive developments of AZD1222 and BNT162b2 for AstraZeneca and Pfizer.

Moderna still has much more room for maneuver than either AstraZeneca or Pfizer. An additional $ 5-10 billion a year would be good for these two big drug manufacturers, but it wouldn’t cause either of the two drug stocks to skyrocket. On the other hand, this kind of revenue would probably ignite a fire below the rate of Moderna.

We soon need to know whether mRNA-1273 is gaining EUA in the United States and regulatory approvals in other countries. If so, Moderna will make billions of dollars in no time. Its size, combined ownership of the COVID vaccine, and its platform capabilities in 2021 will almost certainly make Moderna a much bigger winner than AstraZeneca and Pfizer.