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BioNTech (NASDAQ: BNTX) recently got a public message of breaking up from her favorite collaboration partner that sounded with Modern (NASDAQ: ARNM) and all other biotechnologies with similar technology. Pfizer (NYSE: PFE) decided that they could make messenger RNA (mRNA) vaccines for other diseases without the help of BioNTech or anyone else.
While boasting of The Wall Street Journal Commenting on all the lessons learned from the company’s first experience with BioNTech, Pfizer CEO Albert Bourla said: “We have developed our own expertise”. Here’s why those six words could create problems for BioNTech, Moderna, and a host of biotech startups developing similar drugs.
Image source: Getty Images.
Limits
Using mRNA strands to turn human cells into vaccine mini-factories appears to be a great way to protect against viruses, but the technology still has many limitations. Until someone makes a major breakthrough, mRNA-based drugs will remain limited to single-use applications. This is because viruses have used RNA to hijack cellular machinery from early in life, and our immune systems always become enraged when they encounter strands of mRNA that are supposed to be therapeutic.
Outside of the vaccine arena, there aren’t many applications that mRNA can safely process, and there are only a limited number of frightening pathogens people have against. need protection. This means that Pfizer will eventually run up against almost any company that relies on mRNA technology.
Moderna’s pipeline relies entirely on mRNA, so it will almost certainly meet Pfizer’s next mRNA platform. BioNTech’s pipeline is heavily oriented towards mRNA-based drugs, but not entirely. The company has two antibodies and a small molecule drug in early stage clinical trials as potential new treatments for cancer.
A formidable competitor
Since the FDA has already started to exit pandemic mode, it is unlikely that Pfizer will transport another vaccine candidate from concept to market in less than a year. That said, we can probably count on Pfizer outperforming less established peers like Moderna and BioNTech.
Pfizer is ready to look into mRNA vaccine development with the same enthusiasm it has applied to the COVID-19 vaccine race. To get a casual start-up, Bourla said the company would start making risky experimental products before it had a chance to get approval.
The races for approval aren’t the only challenge Pfizer could throw ahead of Moderna and BioNTech. Before the novel coronavirus ever reared its ugly head, Pfizer was already a champion in vaccine marketing. Prevnar-13, the company’s preventive pneumonia vaccine for the elderly, was the world’s best-selling vaccine in 2019 with $ 5.8 billion in sales worldwide.
Collaboration is everything
Pfizer’s decision to work on new mRNA-based vaccines is bad news for just about any clinical-stage mRNA-focused company. If other large pharmaceutical companies follow Pfizer’s lead and develop mRNA-based drugs in-house, clinical-stage biotechnologies that rely on this technology are going to have serious problems.
It is impossible to overestimate the role that collaboration plays in today’s biopharmaceutical industry. Since each step of the drug development process is exponentially more expensive than the previous step, clinical-stage companies need partners with deep pockets to accept certain financial risks and lend an experienced helping hand.
While independent biotechs can overcome all the necessary hurdles to get a new drug approved, they still need to hire a sales force to run the commercial phase challenge.
They will survive
Pfizer’s entry into the mRNA arena isn’t a reason to dump your stakes in BioNTech or Moderna, but you’ll want to keep an eye out for advancements in the big pharmaceutical industry.
As Pfizer’s entry into the mRNA arena is disastrous news for clinical-stage companies developing mRNA-based drugs, BioNTech and Moderna will have many opportunities to broaden their horizons. In 2021, Pfizer expects COVID-19 vaccine revenue to reach around $ 15 billion based on existing contracts. BioNTech is entitled to half of the profits generated by the vaccine.
This year, Moderna expects $ 18.4 billion in COVID-19 vaccine sales. It’s not entirely clear how much the company’s bottom line is expected to reach this year, but it will suffice to run ahead with a potential new vaccine against cytomegalovirus (CMV) currently in advanced clinical trials. .
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.
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