Two wins for Pfizer mean big leaps for these 2 stocks

The stock market rose again on Monday morning, building on Friday’s gains. Good news from Pfizer (NYSE: PFE) was encouraging for the entire market, as it made investors believe they could be one more step towards ending the COVID-19 pandemic. Starting at 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^ DJI) increased by 253 points to 35,373. S&P 500 (SNPINDEX: ^ GSPC) gained 39 points to 4,480, and the Nasdaq Composite (NASDAQINDEX: ^ IXIC) picked up 187 points at 14,902.

Pfizer stock was among the best performing on the Dow Jones Index as a percentage thanks to some news that sent its stock price higher. Nonetheless, Pfizer’s gains have been minimal compared to increases by other companies involved in the drugmaker. Below, we’ll take a look at what the good news for Pfizer meant for BioNTech (NASDAQ: BNTX) and Therapeutic Trillium (NASDAQ: TRIL).

Full approval of Pfizer / BioNTech vaccine

The big news from Pfizer was that the United States Food and Drug Administration had fully approved the COVID-19 vaccine it had developed with BioNTech. BioNTech shares jumped more than 10% on Monday morning in the wake of the news.

Image source: Getty Images.

The Pfizer / BioNTech vaccine had previously been extremely popular in the United States and around the world as one of the most effective COVID-19 vaccines on the market. However, the companies had supplied the vaccines under an emergency use authorization from the FDA, which created some limitations on its use and how the companies marketed and price the vaccine.

The FDA seemed almost more excited about the development than Pfizer and BioNTech. The regulatory agency’s press release announced the approval as a key step against COVID-19, arguing that the public should be even more confident about “high standards of safety, efficacy and build quality.” due to approval.

BioNTech played second fiddle to compete Modern (NASDAQ: mRNA) among vaccine stocks. However, being the first to gain full FDA approval is a distinction that could help bolster BioNTech’s long-term outlook.

Trillium receives an offer no one can refuse

Meanwhile, shares of Trillium Therapeutics climbed 188%. The cancer specialist has secured a buyout offer from Pfizer at a premium that few acquisitions command, even in the highly lucrative biotechnology and pharmaceutical industry.

Pfizer has agreed to pay a total of $ 2.26 billion for Trillium. Trillium shareholders will receive $ 18.50 per share in cash. Given that the stock closed at just over $ 6 a share on Friday afternoon, it’s clear that Pfizer was willing to pay, calculating its bid at a 118% premium over the weighted average price of the action in the last 60 days.

Pfizer is optimistic that Trillium will help strengthen its portfolio of treatments in oncology and hematology, with a focus on patients with blood-related cancers. Candidates for the clinical stage of Trillium are unique in their way of fighting cancer, with the potential to change the way healthcare professionals treat patients with the disease.

Buying early-stage biotech is always risky, but given Trillium’s potential, Pfizer investors seem happy with the acquisition. Only time will tell, however, whether the move will eventually work to Pfizer’s benefit in the long run.