It's normal to make more than a few flubs while investing, especially when you're new. At the same time, we owe it to ourselves to be humble and to recognise when we've made a mistake with our finances. There's no point in beating yourself up, but there's a big point to understanding what went wrong and how to do it better the next time -- after all, there's money on the line.

Not every mistake has to be a catastrophe, obviously. But it's still worth ironing out the kinks in your investing habits, especially if you plan to be investing for decades to come. With that in mind, I'd like to share three examples of less serious oversights I made in 2024 so that you can (hopefully) avoid them in your own investing life.

1. Not updating my investment thesis in a timely fashion

One of my rules is that I need to have a strong and pithy investment thesis for every investment I make, and for any that I write about, too. But an investment thesis simply can't be a monolith that stands unchanged over time, as markets are constantly changing, and businesses are constantly updating their strategies to compete more effectively both today and in the future.

The more complicated the industry and the more complicated the company, the more moving parts there are for the investor to take into account when formulating a thesis, which entails a larger responsibility to update the thesis more frequently. Even when broadly upholding that responsibility, it's still very possible to miss the forest for the trees, as I did with Pfizer.

Since roughly 2020, my investment thesis called for Pfizer to be a favorable stock to buy and hold because of its large portfolio of pharmaceuticals and its demonstrated competency in research and development (R&D), as reflected by its massive pipeline.

Nonetheless, the stock is down by 45% over the last three years, badly underperforming the market's gain of 31%. Clearly, something wasn't working, but I kept circling back to the same factors that were originally in my investment thesis, finding them to still be sound.

Then, late in 2024, an activist investing group called Starboard Value said that it had taken a $1 billion stake in Pfizer with the goal of improving the company's efficiency. The group published a report outlining many areas where it thought that the company was struggling, including specifically its R&D efficiency and its capital allocation strategy.

Reading the report, I was gobsmacked; the activist group had essentially explained to me quite fastidiously that my investment thesis was no longer accurate. I immediately changed my stance on the stock to be a bit more bearish.

One lesson here is to listen to any nagging feelings you have about a stock and its performance. If your investment thesis still seems true on the surface in the face of a company's difficulties, dig deeper into the details, and be ready to update your mental model accordingly.

2. Assuming the best outcome would occur

Another subtle investing mistake I made pertains to Costco Wholesale, which to this day remains my single most favorite investment.

In late 2023, Costco's CEO announced he would be retiring, and that he would be replaced in the following year by Ron Vachris, who was the company's president at the time and an employee for 40 years. Given Costco's tradition of successfully promoting leaders from within, I reacted positively to the news and thought nothing more of it.

But that was a mistake, even if it didn't carry negative consequences. My level of trust in the board of directors was and still is fairly high. Nothing has gone wrong with Costco under its new management. I'll buy more shares as I'm able to do so.

Still, if you don't perform any due diligence when you know there has been a major change with one of your investments, like a new CEO, it's much harder to build the conviction necessary to hold on to your shares for the longer periods of time, where you'll see the largest growth.

Think about it. Psychologically, it's much better to have a hunch about which new factor is causing things to go right -- or wrong -- than it is to look at your returns and feel confused about what's happening. Checking the details is how to become a better investor.

3. Complacency

I've held Apple (NASDAQ: AAPL) for quite some time now. Everyone knows that Apple will be selling iPhones, MacBooks, and iCloud subscriptions until the end of time, not to mention a bunch of other products and services. Its brand is most likely the most valuable on the planet, and it has an endless runway for more growth.

But does the company's actual performance bear out all of this common "knowledge" that formed the basis for my investment in the stock? In a word, no. Over the last 10 years, its quarterly revenue has risen by 63.6%, reaching $94.9 billion, and its free cash flow (FCF) has grown by 43.9%, reaching $23.9 billion.

Those figures are impressive for a gargantuan business, to be sure. But in relative terms, there are many other companies that are expanding at a much faster pace. Similarly, it is very likely that Apple is facing some headwinds due to its comprehensive penetration of its core markets like smartphones, which are also highly competitive.

My mistake here was to assume that the boom times both could and would continue forever with Apple. There is no guarantee that the stock will fall, and it's still a favorable investment.

But the only way to avoid the unanticipated consequences of complacency is to invest some effort and do the diligence even if there are not any major changes happening in any given quarter, so that's what I'll be doing from now on with this stock.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 subtle investing mistakes I won't repeat in 2025 and beyond appeared first on The Motley Fool Australia.

There's an old chestnut that most investors could stand to hear: If you want to succeed in investing (or hockey), skate to where the puck is going, not to where it's been.

Buying shares of yesterday's winning businesses might be a decent way to preserve your wealth by banking on their continued success, but if you want to nab big gains, you'll need to invest in companies that are working on solving tomorrow's problems today. Clocking important trends in the economy and the world is critical for guiding your search.

So let's take a look at two trends that'll likely be huge in the near future. You'll gain a few actionable ideas about investments that could pay off down the line.

1. Psychedelic therapies for mental illnesses

Psychedelic drugs like psilocybin, LSD, ketamine, and MDMA aren't legal to use recreationally in most places, but that doesn't mean they can't be powerful medicines when used appropriately.

The current standards of care for some common yet difficult-to-treat conditions like major depressive disorder are interventions like antidepressant drugs and cognitive behavioral therapy that leave many patients experiencing relapses despite treatment. But psychedelic therapies delivered by experienced therapists might not have that problem -- which could be an opportunity the businesses that make them.

Compass Pathways (NASDAQ: CMPS) and Atai Life Sciences (NASDAQ: ATAI) are two biotech stocks with pipelines chock-full of psychedelic therapies in clinical development. Per Compass' data from one of its phase 2b studies, its COMP360 psilocybin-with-talk-therapy combination leads to rapid reduction in depression symptoms that lasts for at least 12 weeks and causes few serious side effects. For some subsets of patients, the improvements appear to be long-lasting or perhaps even permanent. And Atai's equity interest in Compass means that it stands to benefit from the therapy's sales if it's eventually commercialized.

But Compass' impressive results are far from the only success story in recent clinical trials of psychedelics. Numerous third-party researchers and academic groups have shown compelling results that suggest psychedelics have the chance to reshape psychiatry as we know it, and for the better. If you want to get exposure to upside from drug development in the psychedelics space, either Atai or Compass is a suitable place to consider investing.

2. Treating or curing long COVID

As you may have heard, long COVID is an illness that features a sometimes-debilitating constellation of symptoms like fatigue, shortness of breath, and cognitive issues, all of which can occur after someone is infected with the coronavirus.

According to the Centers for Disease Control (CDC), 7.5% of adults in the U.S. are afflicted with long COVID. And an estimated 80% of people who have been infected with the coronavirus have at least one long-term symptom associated with their illness. Right now, it appears that even fully vaccinated and boosted people can experience long COVID, and even mild coronavirus infections can cause it.

To make matters worse, there are no specific treatments for it yet, and the ranks of the afflicted are, unfortunately, growing.

A few different companies are either considering or have already initiated investigations into long COVID therapies. Pfizer's (NYSE: PFE) antiviral medicine, Paxlovid, might soon be tested for that purpose, though no trials are currently ongoing. GlaxoSmithKline and other major drug manufacturers are also considering initiating new therapy programs, and a few biotechs have already tested candidates in clinical trials and struck out.

With so many millions of people suffering with long COVID, any medicines that successfully treat it will likely be big moneymakers. For now, there aren't too many places to park $2,000, but if a player like Pfizer announces that it's initiating a project, it'll be a green light for investors. Just keep in mind that there's a significant risk of failure in the clinical trial process, so it might make sense to pick a few different long COVID stocks to buy rather than just one.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 top trends to invest $2,000 in ahead of the crowd appeared first on The Motley Fool Australia.

If your portfolio is teetering amid a turbulent bear market -- as pretty much everyone's is at the moment -- you need a plan to come out ahead, and you need to act on it.

Fruitful investments made today could have the benefit of a very long run-up once the bear market subsides, and mistakes made out of fear could have consequences for a long time, too. 

With those consequences in mind, let's look at three quick steps you can take to make the best out of the market as it is right now. 

1. Build on your high-confidence positions

The first thing to do when the market gets rough is to use it as an opportunity to gobble up shares of companies in your portfolio you think will continue to appreciate in value for a long time, even if their stock price is falling in the short term.

Think about a business like Pfizer (NYSE: PFE), which has seen its shares fall by 11% so far this year despite widespread successes with hit products like Comirnaty, its coronavirus vaccine, and Paxlovid, its antiviral pill for COVID.

If you have a position in it and the recent drop scares you off from adding more, you're missing out on a sale -- assuming that you actually believe it'll eventually recover. 

So, especially for an investment like Pfizer, which is steadily growing its sales and net income, it makes more sense to be buying shares than sitting on the sidelines. The real trick is to keep investing even when high-confidence picks get rocked.

And as long as your investing thesis is still as valid as when you started buying the shares, you'll be getting the biggest discounts when things look like they're crashing the hardest. Just be aware that you might need to wait a few years before your spending starts to pay off with outsized returns.

2. Set up a dividend reinvestment plan

Another great action to take to weather the bear market is to enable a dividend reinvestment plan (DRIP) for your dividend-paying stocks. Take the returns from AbbVie (NYSE: ABBV) over the last 10 years, for example:

ABBV data by YCharts

As the chart shows, the price returns from AbbVie shares are nowhere near the total return that's possible by retaining and reinvesting each of its quarterly dividend payments. When you reinvest your dividends instead of accepting them in cash and spending them elsewhere, your position compounds in value much faster.

And when share prices dip during a bear market, the stock's dividend yield increases accordingly, meaning that if you aren't reinvesting your dividends at that moment, you're missing out on securing some higher-yield shares for the remaining years of your long hold. 

Plus, biopharma companies like AbbVie often have significant cash flows that are enough to keep hiking their dividend even when there's a bear market, recession, or other economic issues.

That means if you don't set your shares to reinvest their dividends now, then by the time the bear market is over, you might have missed out on quite a bit of compounding at a very attractive rate. And it would be a shame to lose out on this bonus that's there for the taking. 

3. Talk yourself out of panic selling (or buying)

Perhaps the most important step to take during a bear market or market crash is to take a deep breath and talk yourself out of selling your shares in a panic. (It's also helpful to avoid frantically buying the dip on stocks you aren't fully confident in but seem priced like a bargain.)

Selling your shares locks in whatever losses you've sustained, regardless of whether there is a valid business reason for the underlying company to experience additional headwinds. 

In the current market, it's true that there are quite a few economic headwinds making things difficult, but it's also true that buying high and selling low is a losing strategy.

Eventually, the market will recover, and when it does, the stock you're itching to sell could easily come back with a vengeance. Therefore, when you get tempted to pull the plug on some of your investments, you'll regret not stepping back, especially if you don't have a need for the money you invested anytime soon.

When I get tempted to sell due to market chaos, I find that it's often helpful to simply close my browser tab displaying my portfolio and take a walk outside. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 steps you'll regret not taking during this bear market appeared first on The Motley Fool Australia.

The healthcare technology company is currently the subject of a $180 million takeover proposed by Pfizer Inc (NYSE: PFE)'s Australian arm.

However, if its COVID-19 data confirmation study's results are deemed unsatisfactory, Pfizer's bid will drop to $127 million.

Right now, ResApp shares are halted at their previous closing price of 17.5 cents each.

Let's take a closer look at what's going on with ResApp on Monday.

The ResApp share price is in the freezer on Monday

The ResApp share price has been halted on Monday as the market awaits results from a clinical validation study.

The study will determine if the company's technology can detect COVID-19 by analysing audio of a patient's cough as accurately as previous studies have found.

A previous pilot study found the technology – dubbed COVID Algorithm – performs with 92% sensitivity and 80% specificity.

Pfizer will offer ResApp shareholders 20.7 cents for each share they hold if the soon-to-drop results find the COVID Algorithm performs with a sensitivity of at least 86% and specificity of at least 71%.

Pfizer has also ordered the results be confirmed by an independent statistician.

If the study fails to meet the above criteria, Pfizer will offer shareholders just 14.6 cents per share.

The 20.7 cent per share bid represents a 130% premium on ResApp's close as of 8 April. The 14.6 cent per share bid represents a premium of 62.2% on the same close.

The ResApp share price is expected to remain frozen until the results' release or Wednesday's open, whichever comes first.

The company noted it's expecting to return to trade on the announcement of the results.

The ResApp share price has gained 169% over 2022 so far. It's also 280% higher than it was this time last year.

The post ResApp share price frozen as $180m Pfizer takeover bid hangs in the balance appeared first on The Motley Fool Australia.

Today we look at an ASX ETF that tracks a specific industry, namely healthcare. And we look at why two financial pros list it as a 'buy'.

A defensive ASX ETF

In an ageing world with the global pandemic still very much in circulation, healthcare shares have received plenty of attention these past two years.

Aussie investors looking for exposure to international healthcare stocks with a single investment may wish to look into the BetaShares Global Healthcare ETF (ASX: DRUG).

This ASX ETF is invested in a wide range of international healthcare companies. Some 45% of them are involved in pharmaceuticals, with 19% focused on healthcare equipment, and 11% in the biotechnology space.

DRUG's top four holdings are UnitedHealth Group Inc (NYSE: UNH), Johnson & Johnson (NYSE: JNJ), AbbVie Inc (NYSE:ABBV) and Pfizer Inc (NYSE: PFE).

Year-to-date, this ASX ETF is down 2.4%. That compares to a 3.9% loss posted by the All Ordinaries Index (ASX: XAO) so far in 2022.

Why these two fundies list DRUG as a buy

Speaking with Livewire, Felicity Thomas from Shaw and Partners said DRUG was an ASX ETF to buy.

According to Thomas:

If you think we're going into a recessionary environment, you want to tilt your portfolio to be a little bit more defensive. Healthcare is defensive and we've got an ageing population globally, so I think it's a really good long-term play

Now we're not looking at an imminent recession here in Australia just yet. But a growing cohort of economists is beginning to predict that the United States could be heading down that road sooner than later. And where the world's biggest economy goes, most others tend to follow.

Steering clear of potential recessions, Ben Nash from Pivot Wealth also listed this ASX ETF as a buy, citing the immense expenditures going into healthcare globally.

Nash said:

I think that we're seeing huge amounts of money being spent on healthcare in Australia and globally. The US is one of the biggest global markets and healthcare costs are pretty staggering over there. I think that plus the secondary exposure to the property market makes this one a solid performer for the medium to long term.

Investors looking for an ASX ETF to add to their portfolios for the longer term may want to run their slide rule across DRUG.

The post A defensive ASX ETF for a recessionary environment: experts appeared first on The Motley Fool Australia.

Below we take a look at the clinical trial supply agreement announced this morning that looks to be driving ASX investor interest.

What agreement was announced?

The Imugene share price is flying higher after the company reported a new clinical trial supply agreement with Merck KGaA (ETR: MRK) and Pfizer Inc. (NYSE: PFE).

The companies will work together to evaluate the safety and efficacy of Imugene's HER-Vaxx when combined with avelumab in patients with HER-2 positive gastric cancer.

According to the release, HER-Vaxx is a "B-cell peptide cancer immunotherapy designed to treat tumours that over-express the HER-2/neu receptor, such as gastric, breast, ovarian, lung and pancreatic cancer".

Avelumab (marketed as Bavencio) is co-developed by Merck and Pfizer. Avelumab is an immune checkpoint inhibitor.

The phase 2 trial will study the effectiveness of HER-Vaxx combined with chemotherapy with or without avelumab compared to chemotherapy alone in patients with HER-2 positive gastric or gastroesophageal junction adenocarcinomas.

Commenting on the agreement, Imugene's CEO Leslie Chong said:

Imugene is excited to announce this collaboration with Merck KGaA, Darmstadt, Germany and Pfizer. HER-Vaxx has shown a tolerable safety profile and encouraging efficacy in patients with metastatic HER-2 positive gastric cancer, and we are looking forward to evaluating HER-Vaxx with avelumab in the perioperative clinical setting.

Working together, we're committed to finding ways to address the unmet needs of patients living with cancer.

Under the agreement, Imugene will sponsor and fund the study from its existing budget. Merck and Pfizer will provide avelumab.

Imugene share price snapshot

The Imugene share price has been on a tear in 2021, up 525% year-to-date. That compares to a 12% gain posted by the All Ordinaries Index (ASX: XAO) during that same period.

Over the past month, Imugene shares are up 48%.

The post Imugene (ASX:IMU) share price leaps 9% on Pfizer, Merck deal appeared first on The Motley Fool Australia.

Depending on how narrowly you define ETFs, they've been around for either 13 some years, or well over 20.

But one thing is clear.

As ever more retail investors have entered the market in recent years, ETFs have exploded in popularity. That's because, with a single investment, they can offer you exposure to a large selection of shares, helping diversify your portfolio without having to extensively research every holding yourself.

Below we look at a COVID-19 vaccine exchange traded fund that Bloomberg Intelligence ETF analyst Eric Balchunas says "has a lot of potential".

But first…

The pandemic's silver bullet?

As it stands, the world's leading COVID-19 vaccines rely on something called messenger RNA. You've likely heard that referred to as mRNA.

In a nutshell, mRNA acts as a kind of targeted delivery system that enables your own immune system to better squelch a virus, or potentially other types of disease.

Atop the current success in tackling the coronavirus, mRNA vaccines could potentially treat cancers, the flu, malaria…the list goes on.

While biotech companies have been working on mRNA since the first officially labelled ETFs came out 13 years ago, the global pandemic has turbocharged their development. And we could be hearing a lot more about this cutting-edge biotech in the years ahead.

According to John Bowler, manager of the Schroder Global Healthcare Fund (quoted by Bloomberg):

The beauty of mRNA technology is the speed, in that once you have the genetic sequence, you can identify exactly what you need to put in the code of your vaccine, and you are giving instructions to the target that the immune system can respond to. It really changes the whole dynamic on infectious diseases.

One ETF holds dozens of vaccine developers

Two of the most successful names in the COVID vaccine race are Moderna INC (NASDAQ: MRNA) and BioNTech SE (NASDAQ: BNTX).

Moderna was founded in 2010 in the US state of Massachusetts. The company is a forerunner in mRNA research to treat a range of diseases. And when the COVID pandemic hit, Moderna's boffins went to work overtime.

Since 21 February 2020, when the most of the share market began to tank on early pandemic fears, Moderna's share price has soared 2,280%. In the past 12 months alone, it's gained 531%.

German biotechnology company BioNTech has also had huge success in combatting COVID together with its partner Pfizer Inc (NYSE: PFE). BioNTech was founded in 2008 and, before the pandemic, largely focused on using mRNA biotech to treat cancer.

The BioNTech share price is up 410% over the past 12 months.

But there's a lot more to the mRNA and the wider vaccine sector than Moderna and BioNTech. There are dozens of listed biotech companies working on improved COVID vaccines and other cutting edge treatments. We may not have heard of them yet but that may not be the case next year.

With that in mind we turn to ETFMG Treatments Testing and Advancements ETF (NYSEARCA: GERM). (Gotta love the ticker!)

Some 90% of the ETF's holdings are based in the United States and Germany.

Moderna, at 11.6%, is its top holding. BioNTech, at 8.8%, is number 2. It also holds more than 30 smaller, lesser-known (for now) companies. You can find a complete list of GERM's holdings here.

Commenting on GERM, Bloomberg's Balchunas said, "You're getting almost completely original exposure and there are some very small companies in here that could be future Modernas with the next big thing. That gives GERM a lot of potential M&A [mergers and acquisitions] pop."

The post Expert reveals top pandemic ETF play – up 58% in 12 months appeared first on The Motley Fool Australia.

Since CommSec is one of the most widely used brokers in Australia, this trading data gives us an interesting window into what kinds of US shares Aussie investors are taking a closer look at.

So here are the top 10 US shares from CommSec last week. This week's data covers 23-27 August.

Alibaba shoots to the top of the pile

1. Alibaba Group Holding Ltd (NYSE: BABA) – representing 3.9% of total trades with an 86%/14% buy-to-sell ratio.
2. Tesla Inc (NASDAQ: TSLA) – representing 3.2% of total trades with a 65%/35% buy-to-sell ratio.
3. GameStop Corp (NYSE: GME) – representing 2.9% of total trades with a 78%/22% buy-to-sell ratio.
4. Apple Inc (NASDAQ: AAPL) – representing 2.7% of total trades with a 74%/26% buy-to-sell ratio.
5. Microsoft Corporation (NASDAQ: MSFT) – representing 1.9% of total trades with an 86%/314% buy-to-sell ratio.
6. Pfizer Inc (NYSE: PFE)
7. NVIDIA Corp (NASDAQ: NVDA)
8. Amazon.com, Inc. (NASDAQ: AMZN)
9. AMC Entertainment Holdings Inc (NYSE: AMC)
10. Alphabet Inc Class C (NASDAQ: GOOG)

What can we learn from these trades?

Chinese e-commerce giant Alibaba has shot to the top of the pile as CommSec's most popular share last week. The Chinese behemoth behind Alipay, AliExpress, and Ant Financial took home a total of almost 4% of all CommSec international trades last week.

It even pipped the perennially popular Tesla, the electric car and battery manufacturer helmed by Elon Musk. What's more, an overwhelming majority of 86% of all trades were on the buy side.

It's not hard to see why ASX investors might have suddenly developed an appetite for Alibaba shares. This company has been on a steep decline all year, losing around 24% of its value over 2021 so far. Alibaba is also down more than 44% from its all-time high from October last year. It seems a number of Australian investors are sensing a bargain buy here.

In other news, we still see enduring demand for shares like GameStop and AMC, long held up as examples of 'meme stocks'. GameStop shares are now up almost 40% over just the past fortnight, so it's easy to see where this optimism is coming from.

We also see continuing interest in the big tech blue-chip shares like Apple, Microsoft, Amazon, and Google-parent Alphabet. These companies have generally been hitting new all-time highs of late, but that's nothing new for the FAANGs.

Finally, it's interesting to see vaccine maker Pfizer here too. With 86% of trades on the buy side, it seems some investors may be so inspired by a recent vaccine that they have been compelled to invest in the company too.

The post ASX investors were buying Alibaba, Pfizer shares last week appeared first on The Motley Fool Australia.

At the time of writing, shares in the pharmaceutical company are trading for 46.5 cents each – up 25.68%.

Let's take a closer look at what's getting investors so excited.

IDT says it can manufacture mRNA vaccines in Australia

The COVID-19 pandemic has heralded the first wide-scale use of mRNA vaccines. The leading products in this space are the inoculations jointly produced by Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX), as well as the Moderna Inc (NASDAQ: MRNA) jab.

In an effort to secure domestic supply through the production of the vector for single-strand RNA of viruses, the federal government has been in talks with the companies in a bid to secure a licence for their COVID vaccines to be made in Australia. As well as IDT, CSL Limited (ASX: CSL) is interested in the production of mRNA vaccines on our shores.

IDT says what differentiates its offer from CSL's is it will use existing manufacturing capabilities located near Melbourne's Monash University to make the product. CSL is proposing 2 new facilities for the endeavour, according to the SMH.

The prospect of IDT being awarded a lucrative government contract may be exciting investors, judging by the IDT share price rise.

"This is an established site with an established equipment train in it, which we will expand, and I think that gives us a material time advantage," IDT Chief Executive David Sparling is quoted in the SMH as saying.

"We've formed an alliance with numerous research bodies around the country, including Monash University, and that builds an ecosystem for mRNA."

Dr Sparling further went on to tell the paper his company could produce "100 million doses within 18 months."

IDT says it wants to build an mRNA research facility near its production site if it secures the licence to make the product. Dr Sparling did not reveal any financial details to the SMH.

Motley Fool Australia reached out to IDT for comment. Dr Spalding responded that the reports in the SMH are accurate and that he had nothing further to add beyond what was already in the public domain.

IDT share price snapshot

Over the past 12 months, the IDT share price has increased 141%. The company's shares faced a similar boom when IDT revealed it was in discussions with the Victorian government over a proposed mRNA vaccine plant.

IDT Australia has a market capitalisation of around $104 million.

The post Why the IDT (ASX:IDT) share price is rocketing 25% on Wednesday appeared first on The Motley Fool Australia.

What happened

So what

Now what

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Pfizer shot 4% higher on Tuesday appeared first on The Motley Fool Australia.

What happened

Inoculating the world can be quite beneficial for a big pharmaceutical company's finances. Such is the case with Pfizer Inc (NYSE: PFE), the shares of which closed Wednesday more than 3% higher on the back of top- and bottom-line beats in its latest quarter.

So what

Wednesday morning, Pfizer unveiled its Q2 figures. They revealed that the pharmaceutical sector giant earned revenue of $19 billion, a robust 86% higher than in the same quarter of 2020. Much of this was, of course, due to the BNT162b2 coronavirus vaccine it's developed with Germany-based BioNTech. But even stripping out the vaccine's sales from the top line, the company still managed to grow revenue by 10% to $11.1 billion. On average, analysts tracking Pfizer stock were modeling $18.45 billion.

The company notched a more convincing beat with net profit. This also saw quite a leap, as on a non-GAAP (adjusted) basis it increased by 75% to $6.08 billion ($1.07 per share). Those analysts were anticipating $0.96 per share.

Quoted by the company as saying the quarter was "remarkable," CEO Albert Bourla signaled optimism for the coming years. He and his troops believe Pfizer will be able to hit a 6% compound annual revenue growth rate through 2025. 

Now what

With that powerful quarter behind it, the confident Pfizer has upped its full-year guidance. It now expects $78 billion to $80 billion in revenue (previous estimate: $70.5 billion to $72.5 billion), and adjusted diluted per-share earnings of $3.95 to $4.05 (up from $3.55 to $3.65).

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why the Pfizer share price shot higher on Wednesday appeared first on The Motley Fool Australia.

The Therapeutics Goods Administration (TGA) made the decision late last night. Previously, COVID vaccines were only approved for those over the age of 16.

The TGA said in a statement:

"(Approval) has been made following careful evaluation of the available data supporting safety and efficacy, including clinical studies with adolescents 12 to 15 years of age."

The highly infectious delta variant is spreading in Australia, including in children. This is unlike previous strains, so today's news will provide options for worried parents.

However, the TGA says:

"Continued approval depends on the evidence of longer-term efficacy and safety from ongoing clinical trials and post-market assessment."

Pfizer replaces AstraZeneca as vaccine du jour

Australia is ranked last for the percentage of people fully vaccinated in the Organisation for Economic Co-operation and Development (OECD), and second last for people who have just one dose of the vaccine.

The federal government was relying on the bulk of supply to come from locally CSL Limited (ASX: CSL) manufactured AstraZeneca plc (LON: AZN).

However, emerging evidence of an extremely rare blood clotting disorder caused by the vaccine led to the government's expert advisory body, ATAGI, to recommend only those aged over 50, later 60, should take the vaccine.

Large swathes of Australians, including older residents, are reluctant to take the vaccine. Instead, they are waiting for more Pfizer vaccine.

The problem is we have too much AstraZeneca and not enough Pfizer vaccine.

The government acted to double the supply of Pfizer, as well as order Moderna Inc (NASDAQ: MRNA) vaccine as well. The bulk of this additional supply will arrive in the fourth quarter of this year.

The federal government has indemnified GPs who administer AstraZeneca in an attempt to get more jabs in arms.

It is available to those under 40 years who choose to take the jab at their doctor's office.

While today's news is positive, there is no expectation that children will be able to get inoculated any time soon.

Federal Health Minister, Greg Hunt said:

"Our plans are in place to roll out what is more likely, on the early advice I have, is that they will fast-track vaccines for 12- to 15-year-olds for the immunocompromised children or those with underlying health conditions," Hunt told Channel 7.

Other children will need to wait, along with adults, for more supply of Pfizer most likely in September or October.

The post TGA approves Pfizer vaccine for kids aged 12-15 years old appeared first on The Motley Fool Australia.

Coronavirus vaccine leaders Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) announced earlier this year that they'd launched clinical trials of booster shot candidates -- and you could almost hear the world's collective sigh of relief.

As coronavirus variants gained ground, everyone's big worry was staying ahead of them. Boosters may help because they offer the already vaccinated person's immune system an extra push.

Moderna has said it aims to bring a booster to market this fall. And Pfizer just last week said it's ready to file for regulatory approval of its third-shot booster candidate in the coming weeks.

On the same day as Pfizer's news, the Centers for Disease Control and Prevention (CDC) and the U.S. Food and Drug Administration (FDA) delivered a startling message. One that could upset Pfizer's and Moderna's booster plans.

No need for a booster

"Americans who have been fully vaccinated do not need a booster shot at this time," the agencies said in a joint statement.

The reason? Today's vaccines are very efficacious against the original coronavirus and variants so far. And they're especially effective at protecting people from hospitalization and death.

This is true. Pfizer and Moderna both have reported six-month follow up data from their phase 3 trials. Their vaccines boast overall efficacy of 91.3% and more than 90%, respectively. And both companies have performed in vitro tests that demonstrate satisfactory vaccine efficacy against variants of concern.

So... maybe the U.S. health agencies are right? And maybe this means the companies' chances of selling boosters are getting pretty slim? Wait a minute. Let's not get ahead of ourselves.

First, let's talk about whether the CDC and FDA are right. Technically, they may be right this very moment. The Delta variant -- the strain originating in India -- is becoming more and more prevalent. But overall, coronavirus cases in the U.S. have dropped considerably since April. So, there is evidence the vaccines we have are doing their job. Without the help of boosters.

But Pfizer and Moderna themselves have warned of waning immunity several months after vaccination. In the U.S., the new number of vaccine doses administered peaked in early April. That means by October, all of those vaccinated in April and earlier probably should start thinking about getting a booster. Pfizer's CEO has said a booster likely will be needed six to 12 months after initial vaccination.

Efficacy is declining

Real world data out of Israel also indicates boosters may be needed sooner rather than later. The Pfizer vaccine -- the vaccine Israel has relied on -- showed only 64% efficacy in preventing the coronavirus last month, according to the country's health ministry.

Its efficacy in avoiding hospitalization and death still remains high at 93%. That's the most important goal of the vaccine. But a decline in overall efficacy isn't a trend we want to see continuing. Thus, the need for a booster to give immunity a lift.

In my opinion, the CDC and FDA won't be right for very long. If current trends continue, the agencies may find themselves revising their statement by fall -- that's the moment Pfizer and Moderna expected to launch booster shots anyway.

And this leads us to my next point. The CDC and FDA statement today probably won't hurt eventual sales and use of booster shots. The agencies' comments pertained to what's happening right now.

Many people have been freshly vaccinated and immunity is strong. But, as mentioned earlier, Pfizer, Moderna and other experts have given us a potential timeframe for immunity. That means boosters by fall or winter are pretty much inevitable. And that equals demand for these shots before the end of the year.

So, yes, the message from the CDC and FDA surprised many of us. But it doesn't represent difficulties ahead for Pfizer's and Moderna's booster candidates.

Even if the coronavirus situation improves, boosters still will be needed as part of the companies' planned vaccination regimens. So, for vaccine stock investors -- and the companies themselves -- revenue expectations are still very much on track.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Does This Shocking CDC Statement Mean Trouble for Pfizer and Moderna? appeared first on The Motley Fool Australia.

What happened

BioNTech's (NASDAQ: BNTX) shares rose higher than that of the Nasdaq Composite index on Tuesday, which is impressive given that the latter vaulted a new all-time record. The company's stock advanced by 4.6% on the back of some happily surprising news for its investors.

So what

In its annual shareholder meeting on Tuesday, BioNTech's COO and CFO Sierk Poetting revealed the company is considering a shareholder dividend. 

"In the next financial year, the Management Board and the Supervisory Board will examine, in accordance with the legal and statutory provisions, whether and in what amount a resolution on the distribution of dividends should be proposed to the Annual General Meeting," he said.

Poetting did not speculate about said amount, nor did he provide a more specific time frame. He did point out that, thanks in no small part to the flotation of new stock last year, the biotech's cash and cash equivalents more than doubled year over year at the end of 2020. As of Dec. 31 of that year, they stood at slightly over 1.21 billion euros ($1.44 billion), from the end-of-2019 tally of 519 million euros ($617 million).

Now what

BioNTech is busy developing messenger RNA (mRNA) treatments such as the wildly successful BNT162b2 coronavirus vaccine it collaborated on with Pfizer. While a dividend will make the stock that much more attractive, it likely won't be large, given the ambitious biotech's still-considerable need to spend capital in other areas (notably research and development).

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why BioNTech trounced the Market on Tuesday appeared first on The Motley Fool Australia.

That's where the US markets can come in handy. Not only is America home to some of the best companies in the world such as Apple Inc (NASDAQ: AAPL). it also offers ASX investors some exposure to trends and sectors that the ASX 200 just can't.

So here are 3 ASX exchange-traded funds (ETFs) that have the potential to easily expose any ASX investor's portfolio to the US markets.

3 ASX ETFs that can offer ASX investors easy US markets exposure

iShares S&P 500 ETF (ASX: IVV)

Here we have a simple, cheap US-based index fund. The S&P 500 Index (INDEXSP: .INX) is one of the largest and most-tracked index in the world. It holds 500 of the largest companies in the US. That's everything from Apple and Microsoft Corporation (NASDAQ: MSFT) to Ford Motor Company (NYSE: F) and Adobe Inc (NASDAQ: ADBE). This is the index that IVV tracks. This ETF has been an objectively solid performer over the past 10 years, returning an average of 17.93% per annum. it also has one of the lowest management fees of any ETF on the ASX at 0.04% per annum.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another US-based index fund here. But instead of the S&P 500, NDQ tracks the Nasdaq-100 (INDEXNASDAQ: NDX). This index is a little different, holding only the companies that list on the Nasdaq exchange. The Nasdaq is one of the major stock exchanges in the US, but it's a lot newer than its main rival the New York Stock Exchange. As such, it tends to house mostly tech companies. It's largest holdings are Apple, Microsoft, and other tech giants like Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Facebook Inc (NASDAQ: FB) and Netflix Inc (NASDAQ: NFLX).

NDQ charges a management fee of 0.48% per annum, and has retuned an average of 20.94% per annum since its inception in 2015.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This ETF is a little different from the above examples as it is not an index fund. Rather, it can be described as an 'active ETF'. That's because it invests in companies that meet certain criteria – that of a wide economic moat. VanEck works with Morningstar to identify a concentrated portfolio of at least 40 US shares that show signs of a 'wide moat'.

'Moat' is a Warren Buffett term that describes a company's intrinsic competitive advantage. This can be in a powerful brand, cost advantage or other factors that enable a company to stay on top of its competition. Some of MOAT's top holdings include Pfizer Inc. (NYSE: PFE), Boeing Co (NYSE: BA) and Buffett's own Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B). MOAT charges a management fee of 0.49% per annum. It has returned an average of 20.38% per annum since its inception in 2015.

The post 3 ASX ETFs that could give investors easy exposure to the US markets appeared first on The Motley Fool Australia.

On Tuesday, Moderna (NASDAQ: MRNA) reported highly successful results from a clinical trial of its COVID-19 vaccine in patients ages 12 to 17. Depending on how you look at the top-line data from the TeenCove study, mRNA-1273 was found to be between 93% and 100% effective at preventing new cases.

The TeenCOVE trial enrolled over 3,700 12- to 17-year-old participants. Going by the primary case definition of COVID-19, from a period starting 14 days after their second dose, none of the volunteers who received the vaccine have tested positive. And although new case numbers are plummeting across the country, four of the volunteers who received the placebo did test positive for COVID-19.

Since teenagers are far less likely to present symptoms of COVID-19 when they're infected, investigators also used a more sensitive definition of COVID-19 positivity that requires just one symptom plus a positive nasal swab test. Based on those looser criteria, the vaccine was still 93% effective at preventing new cases.

The TeenCove trial results Moderna reported Tuesday stack up nicely against those reported in March by Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) for their rival mRNA vaccine, Comirnaty. That said, comparisons between the two teen trials should be taken with a grain of salt. Pfizer and BioNTech ran their U.S.-based clinical trial in 12- to 15-year-olds at a time when far more Americans were contracting the virus.

Moderna plans to submit a completed data package from the TeenCOVE study to the FDA in early June. Given that its top-line results are roughly in line with those that earned Pfizer and BioNTech a green light for their vaccine to be administered to teens, we can reasonably expect a similar response from the regulator within a few days of its receiving Moderna's submission.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Moderna's teen COVID-19 vaccine trial hits high marks appeared first on The Motley Fool Australia.

The United States-based pharmaceutical giant's shares failed to tread into positive territory, instead sinking almost 4% to US$152.68.

What deal did Moderna make?

The Australian federal government has signed a new deal with Moderna to deliver 25 million COVID-19 vaccines.

This comes at a crucial time during which the AstraZeneca vaccine has been linked to a number of rare, blood-clotting cases across the world. Since then, the Australian Government has mandated that people under 50 years of age in Australia should instead receive the Pfizer jab.

Under the Moderna agreement, the first 1 million COVID-19 doses are set to be received in Australia this September. The following 9 million vials are expected to arrive later in December. Both shipments however are reportedly effective only against the original COVID-19 variant.

The remaining 15 million mRNA vaccines are being planned for 2022 and will contain boosters to fight more recent strains of the virus.

Moderna noted that it will shortly submit an application to the Australian Therapeutic Goods Administration (TGA) for regulatory approval.

Assuming the TGA gives the green light, this will provide Australians with another COVID-19 vaccine option. Currently, the country only offers the AstraZeneca and Pfizer vaccine to the population.

The mRNA vaccine is currently being rolled out across the United States, Canada, the European Union, the United Kingdom, and Singapore.

What about local production?

In further news, Australian Health Minister Greg Hunt said the government will commence discussions with the private sector about locally producing the mRNA vaccines. This is most likely to include global biotech giant, CSL Limited (ASX: CSL) which has previously indicated it's open to such an initiative.

Moderna has also flagged it's open to the idea of Australia manufacturing its vaccine formula locally. 

Moderna CEO, Stephane Bancel commented:

As we seek to protect people around the world with our COVID-19 vaccine and potentially our variant booster candidates, we look forward to continuing discussions with Australia about establishing potential local manufacturing opportunities.

While the government has shied away from setting new vaccination targets, it is encouraged by more Australians being open to receiving the jab.

As of today, over 2.8 million Australians have been administered their COVID-19 vaccines, averaging around 350,000 people per week.

Moderna share price summary

Over the past 12 months, Moderna shares have accelerated, buoyed by the company's successful COVID-19 vaccine production. The Moderna share price reached a 52-week high of US$189.26 in March, before trending lower to its current level. 

Moderna commands a market capitalisation of roughly $61 billion, with more than 401 million shares on issue.

The post Australia eyes Moderna (NASDAQ:MRNA) COVID-19 vaccine delivery appeared first on The Motley Fool Australia.

Shares in CSL Limited (ASX: CSL), Australia's only manufacturer of COVID-19 vaccines, may be in for an interesting year due to 2 key government initiatives.

This year's Budget has granted an additional $1.9 billion of funding to vaccinate Australians. Though, most of the announced changes regard the Pfister-BioNTech and Modena vaccines instead of the AstraZeneca plc (LSE: AZN) vaccine which CSL produces.

Further, the government has incorporated a patent box into this year's Budget.

Let's take a look at what the 2021/22 Federal Budget might mean for CSL shares.

CSL could rejoice from Australia's patent box

The Australian Government is the latest to introduce a patent box to encourage investment in the country's biotech companies.

The patent box will see biotech and medical company incomes from products made with Australian patents taxed at a rate of 17%. That's a decrease from the current tax rate of 25% to 30%.

The Government believes the patent box will encourage companies to conduct their research and development in Australia, as well as keeping their patents here afterwards.

CSL chief scientific officer Dr Andrew Nash had this to say this morning in the Sydney Morning Herald:

[The patent box is] an important reform and will help to ensure that the Australia of the future can more easily turn good science into products, professions, and local, advanced medical manufacturing capacity. It is an especially significant boost to the policy environment as the country navigates its way out of the pandemic.

Boosting vaccine rollout

The Federal Budget also includes another $1.9 billion of funding for the vaccine rollout.

The $1.9 billion includes $777.8 million to be spent over the next 2 years for the administration of COVID-19 vaccinations. Another $510.8 million will go towards the National Partnership on the COVID-19 Response, which will see states and territories also administering vaccines.

The remaining funding will go towards implementing, monitoring, and reporting the vaccine rollout; vaccine distribution, logistics, and storage; and a campaign to advertise the vaccination program.

In challenging news for CSL shares, the Government appears to be more focused on using mRNA vaccines like Pfister-BioNTech and Moderna. Prime Minister Scott Morrison said the Government was "better utilising the available stock of AstraZeneca doses" while announcing it had entered agreements to purchase 30 million doses of the Pfizer BioNTech vaccine. 

While this sounds like the Government might be starting to step away from AstraZeneca, the company is likely not to be banking heavily on AstraZeneca, no matter which vaccine the majority of Australians receive.

As The Motley Fool Australia has previously reported, CSL's exposure to vaccines isn't substantial, and its potential earnings from the AstraZeneca vaccine are small compared to its other business initiatives.

The Federal Budget also includes funding for the Department of Industry, Science, Energy and Resources, which will work with the Department of Health to set Australia up to manufacture mRNA vaccines.

It didn't state how much funding will go towards mRNA manufacturing due to commercial sensitivities.

The post What the Federal Budget could mean for CSL (ASX:CSL) shares appeared first on The Motley Fool Australia.

In a widely expected move, the Food and Drug Administration has expanded its emergency use authorization for Pfizer (NYSE: PFE) and BioNTech's (NASDAQ: BNTX) COVID-19 vaccine to include people as young as 12 years old.

The widened authorization for BNT162b2 was based on the ability of the vaccine to induce the production of COVID-19 antibodies; the levels of antibodies it generated in clinical trial participants ages 12 through 15 were at least as good as the antibody levels in participants in the 16-to-25 age range.

Those antibodies appear to protect patients from being infected by the coronavirus.

Measured starting one week after they received their second doses of BNT162b2, none of the 1,005 adolescents who were inoculated developed COVID-19. Among the 978 trial participants who received placebo shots, there were 16 cases of COVID-19. That equates to a finding of 100% protection, although the numbers in the study were relatively small.

The side effect profile for the adolescents was similar to that seen in those 16 and older. In both groups, people had more side effects after the second dose than the first dose.

Pfizer and BioNTech beat Moderna (NASDAQ: MRNA) to the finish line in terms of gaining FDA authorization for their vaccine to be administered to adolescents. However, BNT162b2's period of exclusivity in that demographic, which presumably will only last for a couple of months, isn't likely to be much of a financial advantage. Large sales contracts with the U.S. government are already in place for both mRNA vaccines, so opening the use of BNT162b2 to a wider age group won't increase its sales. Until another vaccine is authorized for adolescents, some of Pfizer's doses will be used for adolescents, and any supply tightening that might cause for the adult demographic will be filled by Moderna's vaccine or Johnson & Johnson's.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Pfizer and BioNTech's COVID-19 vaccine authorized by the FDA for adolescents appeared first on The Motley Fool Australia.

Pfizer (NYSE: PFE) had a fine first quarter by many standards. Fueled by widespread demand for its BNT162b2 coronavirus vaccine, it crushed both trailing and forward analyst estimates.

One prognosticator following the company, however, isn't ready to pop the Champagne. On Thursday -- two days after those quarterly results were published -- Vamil Divan of Mizuho Securities downgraded his recommendation on the stock from buy to neutral. He maintained his $42 per share price target, which is about 7% above where it's currently trading.

The analyst credited Pfizer with a "stunning beat" in his new research note. However, he wrote, "Cash flows from COVID-19 vaccine sales provide Pfizer with greater optionality, but we wait to see how Pfizer allocates that capital before assessing whether they have improved their 2026-2030 outlook."

As with any pharmaceutical company, Pfizer's future depends greatly on its pipeline. Since much of the focus on Pfizer as a company and as a stock has, understandably, been on BNT162b2 over the past year, more attention needs to be paid to its research and development activities.

"While Pfizer's near-term outlook remains strong and has been boosted by their COVID-19 vaccine, we believe it will be important for these pipeline catalysts to deliver in the coming months in order for investors to gain more comfort with Pfizer's outlook beyond the next four years and drive Pfizer shares meaningfully higher," Divan wrote.

BNT162b2 is currently in widespread use in countries around the world, and particularly in the U.S., where it is one of only three coronavirus vaccines authorized for emergency use by the FDA. However, both cases and fatalities have been dropping significantly in the country.

Pfizer's shares closed Thursday's trading session down by 1%, against the 0.8% rise of the S&P 500 index.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post If Pfizer's vaccine is a winner, why did this analyst downgrade its stock? appeared first on The Motley Fool Australia.