Why BioNTech SE (BNTX) stock is popping high today?

Shares of the BioNTech SE (BNTX) stock were popping high in the pre-market today as BNTX stock price saw a surge of 5.99 to reach $187.47 a share as of this writing. The surge came after the spread of the news that BioNTech coronavirus vaccine partner Pfizer is in talks with India to bypass the rule which requires local trials before the approval of vaccine to use there. Let’s discuss briefly the current scenarios.

Pfizer is in talks with India:

The Pfizer stock is seriously interested to provide the doses of coronavirus vaccine to India but the Indian government wants local trials before the authorization of vaccine to use there. Indian government wanted additional studies for the vaccine in order to consider other aspects such as the efficacy of children and pregnant women but the Pfizer stock is not ready to allocate resources so far.

Now the situation is different in India as it is continuously reporting more than 300,000 new covid cases and more than 3000 deaths every day. Now there is a strong possibility that India will change the policy related to conducting the local trials.

Vaccines for India:

Pfizer has already supplied 1.6 billion doses to India and estimating the capacity of 2.5 billion total doses in 2021.Furthermore the Pfizer announced that it will increase the production capacity of coronavirus vaccine to 3 billion in 2022.

Current Scenarios favor BNTX stock:

Pfizer on Tuesday, May 4, 2021,also did announce that it is planning to seek full Food and Drug Administration approval for its coronavirus vaccine by the end of May.Full approval would make Pfizer and BioNtech stock up in the market even after the end of the pandemic.Moreover both partners could market the vaccines directly to the consumer and would be able to change the price as well.

There is also another positive news for BNTX stock as its partner Pfizer forecasted sales of the vaccines developed with BioNtech to be $26 billion for the year 2021 which representsa 70% higher rate than before.

Conclusion:

There is no single reason for BNTX stock to justify the bullish sentiment as its COVID-19 vaccine partner Pfizer forecasted 70% higher sales for coronavirus vaccines in 2021 and also involved in talks with India which is passing through the worst situation so far. In a nutshell, BioNTech stock is in a good position so far and first-quarter financial results on Monday, May 10, 2021, will further decide the fate of BNTX stock.