Shares of BioNTech Explode 150% Higher on Potential Coronavirus Vaccine

BioNTech (NASDAQ:BNTX) stock price skyrocketed higher this week after the company signed a deal with the U.S. drugmaker giant Pfizer (NYSE:PFE) and China’s Shanghai Fosun Pharmaceutical (SS:600196) to work together on the new vaccine for coronavirus.

Fundamental analysis: Vaccine aimed at preventing COVID-19 infection

Drugmaker giant Pfizer and the Germany-based BioNTech signed a letter of intent aimed at co-development and distribution, with the exception of China, of a potential coronavirus vaccine for preventing COVID-19 infection. The collaboration is expected to commence immediately.

The deal excludes China as BioNTech yesterday announced a deal with Shanghai Fosun Pharmaceutical over the rights in China for its potential coronavirus vaccine. It is said that testing on humans can start as soon as April.

The two companies are planning to finalize the development details and financial terms over the next few weeks. Development teams will be using sites in both Germany and the United States, during the process.

This announcement comes just two days after Germany acted to stop the U.S. Government from working to move CureVac, another German drugmaker, to the United States. The company is allegedly also working on the coronavirus vaccine.

Technical analysis: Price explodes higher

Shares of BioNTech exploded higher over the past two days after the German drugmaker announced agreements with Pfizer and Shanghai Fosun Pharmaceutical. The price shot from the mid €20s to over €70 in just three days.

As seen in the chart, the price action was capped by the ascending trend line (the red line) around the €70 mark. It is hard to project higher levels as the price action trades in uncharted territory. As a reference, the previous all-time high was €44.66, printed in January, which is 37% lower than today’s high of €71.50.

Summary

Shares of BioNTech exploded higher after the company announced deals with Pfizer and Shanghai Fosun Pharmaceutical to work together on the potential coronavirus vaccine. As a result, the stock price rose more than 150% in just three days.