Many Americans have now received the COVID-19 vaccines that have been developed Modern (NASDAQ: MRNA), Pfizer (NYSE: PFE), and Pfizer’s partner BioNTech (NASDAQ: BNTX). However, the vaccination efforts are not as far as hoped. Hierin Motley Fool Live video recorded on December 23, 2020, Corinne Cardina, Head of Healthcare and Cannabis Bureau, and author Keith Speights of Fool.com discuss one green flag and one red flag for these coronavirus virus deployments.
Corinne Cardina: Keith, starting with the Pfizer BioNTech vaccine, what is one green flag and one red flag for investors so far associated with its vaccination?
Keith Speights: Well, the obvious green flag is that it is being rolled out. More and more people are being vaccinated and that is good news. I do not think there are really red flags as such at the moment. Maybe some potential yellow flags.
We’ve talked in the past, Corinne, that there was some miscommunication, poor communication between the US government and Pfizer, but I think these issues, no. 1, is not uncommon. This is a huge rollout that is being done in a very short period of time, and it is to be expected. There are going to be some hiccups along the way and certainly not a big issue in the long run. But it’s a little yellow flag that has come up. Again, nothing that I am particularly worried about.
Then the other is perhaps the yellow flag, which we really knew all along, that Pfizer’s vaccine has ultra-cold storage requirements, which Moderna’s vaccine does not have, and consequently we see that some states prefer to use Moderna’s vaccine. for some of the hard-to-reach places, instead of Pfizer’s vaccination due to the cold chain requirements. This could be a bit of a tip for what may be on the way as global vaccination of vaccines gets underway. This could be a bit of bad news for Pfizer, as it’s a bit of a competitive disadvantage there.
Cardinal: Definitely, and let’s do the same for Moderna. What is a green flag and a yellow, orange, red flag?
Games: Well, I think you can flip the coin. The green flag is the rollout and Moderna’s vaccine has fewer logistical challenges due to the formulation with which it can be stored in standard refrigerators and freezers, so it is a very good green flag. And at this point I do not know of any red flag, Corinne, do you? I was trying to do research. I did not come across anything that really pops out like a red flag with Moderna’s vaccine.
Cardinal: Yes, it’s early days. They have time to do wrong communication. There is time for headlines related to side effects. But Moderna seems to have a better safety side effect profile than the Pfizer-BioNTech one. So we will definitely stay tuned for any red flags.
Games: Yes. The other thing, of course, is that Operation Warp Speed fully controls the distribution of Moderna’s vaccine, while Pfizer initially held the reins tighter anyway. This could reduce some of the speed bumps we saw with Pfizer’s rollout.
Cardinal: Moderna appears to have a better relationship with the federal government. I know Pfizer was a bit controversial. Moderna has accepted money from Operation Warp Speed. They had no problems signing the contract; they seem to be in the good grace of OWS. File it under green flag.
Games: Exactly. This can make some differences.