Many Americans have already received the COVID-19 vaccines developed by Modern (NASDAQ: MRNA), Pfizer (NYSE: PFE)and Pfizer partner BioNTech (NASDAQ: BNTX). However, vaccination efforts are not as advanced as expected. In that Motley Fool Live video recorded on December 23, 2020, Department of Health and Cannabis chief Corinne Cardina and Fool.com writer Keith Speights discuss a green and a red flag for these coronavirus vaccine launches.
Corinne Cardina: Keith, starting with the Pfizer-BioNTech vaccine, what is a green flag and a red flag for investors related to the vaccine launch so far?
Keith Speights: Well, the obvious green flag is that it is being launched. More and more people are being vaccinated and this is great news. I don’t think there are really any red flags as such right now. Maybe some potential yellow flags.
We have already talked about in the past, Corinne, that there has been some communication failure between the US government and Pfizer, but I think that these issues, No. 1, are not uncommon. This is a massive release that is being made in a very short period of time and is expected. There will be some hiccups along the way and it certainly won’t be much of a concern in the long run. But this is a bit like a yellow flag that has appeared. Again, it is nothing that I am particularly concerned with.
So the other maybe yellow flag, which we really know all the time, is that the Pfizer vaccine has ultra-cold storage requirements that the Moderna vaccine does not, and as a result, we are seeing some states prefer to use the Moderna vaccine for some of these hard-to-reach locations, instead of the Pfizer vaccine due to cold chain requirements. This may be a small indication of what may be on the way as the global vaccine launch begins. This could be a bit of a bad situation for Pfizer, because it is somewhat at a competitive disadvantage.
Cardina: Certainly, and we will do the same with Moderna. What is a green flag and a yellow, orange and red flag?
Speights: Well, I think you could flip the coin. The green flag is that the launches are happening and Moderna’s vaccine has less logistical challenges because of its formulation that allows it to be stored in conventional refrigerators and freezers, so this is a very good green flag. And at this point, I don’t know any red flags, Corinne, do you? I was trying to do some research. I didn’t find anything that really leaps like a red flag with Moderna’s vaccine.
Cardina: Yes, it is the beginning. They have time to communicate poorly. It’s time for headlines related to side effects. But Moderna seems to have a better side-effect profile than Pfizer-BioNTech. Therefore, we will certainly be on the lookout for any warning signs.
Speights: Yes. Of course, the other thing is also that Operation Warp Speed is taking full control of Moderna’s vaccine distribution, while Pfizer held the reins more tightly, initially at least. This could reduce some of the obstacles that we saw with the launch of Pfizer.
Cardina: Moderna seems to have a better relationship with the federal government. I know that Pfizer has been a little contentious. Moderna accepted money from Operation Warp Speed. They had no problems signing the contract; they seem to be in the good graces of OWS. File this under the green flag.
Speights: Exactly. This can make some differences along the way.