COVID-19 isn't as concerning to many Americans as it was in 2020. Unsurprisingly, sales of COVID-19 vaccines have plunged. Does that mean investors should throw in the towel on vaccine stocks? Not at all. Vaccine stocks are shares of publicly traded companies involved in the development of vaccines that immunize against many disease-causing microorganisms -- not just the virus that causes COVID-19.
For one thing, COVID-19 vaccines continue to generate significant revenue despite the sales declines. More importantly, there are lots of other types of vaccines that are key growth drivers for some pharmaceutical companies.
Here's what you need to know about investing in the top vaccine stocks, along with our top vaccine stock picks.
Top vaccine stocks to consider
Here are four top vaccine stocks, plus two others to watch:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Pfizer (NYSE:PFE) | $154.8 billion | 6.32% | Pharmaceuticals |
| BioNTech Se (NASDAQ:BNTX) | $25.6 billion | 0.00% | Biotechnology |
| Moderna (NASDAQ:MRNA) | $16.0 billion | 0.00% | Biotechnology |
| GSK (NYSE:GSK) | $121.5 billion | 2.83% | Pharmaceuticals |
| Bavarian Nordic A/s (OTC:BVNR.Y) | $2.4 billion | 0.00% | Biotechnology |
| Emergent BioSolutions (NYSE:EBS) | $573.5 million | 0.00% | Biotechnology |
1. Pfizer
NYSE: PFE
Key Data Points
Pfizer (PFE +2.76%) made a great decision in 2020 when it teamed up with German biotechnology company BioNTech (BNTX +1.00%) to develop a COVID-19 vaccine. The vaccine, given the brand name Comirnaty, was the first to win U.S. approval and was a massive commercial success for Pfizer -- at least for a few years.
Dwindling sales for Comirnaty have caused Pfizer's revenue to sink and have taken a steep toll on the pharmaceutical company's stock. However, Pfizer has two other vaccines on the market that generate significant revenue: pneumococcal vaccine Prevnar 20 and respiratory syncytial virus (RSV) vaccine Abrysvo.
Pfizer's pipeline features several other vaccines that are in development. They include Lyme disease vaccine PF-07307405, streptococcus vaccine PF-06760805, and influenza vaccine PF-07252220.
Vaccines aren't the only products that could contribute to Pfizer's growth, though. The company also markets drugs that treat a wide variety of conditions, including autoimmune diseases, cancer, and migraine. In addition, Pfizer pays an attractive dividend, making the stock a favorite of income-seeking investors.
2. BioNTech
NASDAQ: BNTX
Key Data Points
As Pfizer's partner, BioNTech (BNTX +1.00%) benefited from Pfizer's financial resources, global manufacturing capacity, and regulatory expertise. The company's messenger RNA (mRNA) technology was critical to the success of the jointly developed COVID-19 vaccine.
This COVID-19 vaccine remains BioNTech's primary revenue source for now. However, the company is working with Pfizer to evaluate a combination COVID-19/flu vaccine.
BioNTech is also developing several other vaccines and therapies targeting various types of cancer. Some of these programs are based on mRNA technology, while others are protein-based therapeutics.
3. Moderna
NASDAQ: MRNA
Key Data Points
4. GSK
NYSE: GSK
Key Data Points
OTC: BVNR.Y
Key Data Points
NYSE: EBS
Key Data Points
What to know about investing in vaccine stocks
Before buying a vaccine stock, start by understanding where the company’s vaccines stand. Some already have approved products on the market, while others are still seeking regulatory clearance — and approval is never guaranteed. Even after approval, manufacturing, distribution, or safety concerns can limit commercial success.
It’s also important to look beyond a single vaccine. Companies with multiple products or a strong pipeline tend to be less risky than those relying on one candidate.
Key factors to evaluate include:
- Your risk tolerance: Vaccine stocks can be volatile, especially around trial results or regulatory decisions.
- Patent timelines: Revenue can drop as patents near expiration.
- Competition: Check whether rival vaccines are gaining share.
- Pipeline strength: Future growth often depends on what’s in development.
- Valuation: Make sure the price reflects realistic growth prospects.
Global vaccine market outlook
Estimates vary on how much the global vaccine market is expected to grow over the next several years.
Market research company Research and Markets projects that the global vaccine market will grow from roughly $50.5 billion in 2025 to $63.7 billion by 2030, representing a compound annual growth rate (CAGR) of 4.8%. However, Mordor Intelligence estimates that the global vaccine market will expand by a CAGR of around 6.5% between 2025 and 2030, reaching $114.8 billion by the end of the decade.
Coherent Market Insights seems to align relatively well with Mordor Intelligence. The market researcher predicts that the global vaccine market will grow by a CAGR of 6.2% to $124.9 billion by 2032.
Key factors affecting the growth of the global vaccine market include:
- Technological innovation.
- Prevalence of infectious diseases.
- Government support of vaccination.
- Demographic trends.
Related investing topics
FAQ
Vaccine stocks FAQ
About the Author
