Pfizer shares surge 6% to reach all-time high mark since 1999, Here’s how

Pfizer’s share price surged 6% on Tuesday to reach a record high of $48.57. The pharmaceutical company surpassed its previous record of $47.39, which was reached in 1999.

Pfizer’s share price surged 6% on Tuesday to reach a record high of $48.57. The pharmaceutical company surpassed its previous record of $47.39, which was reached in 1999.

Jeff Jonas, a portfolio manager at Gabelli Funds told Reuters, “I think they are finally getting credit for the vaccine. ” According to Jonas, investors thought of Pfizer vaccine as “a one-time cash infusion”. He also said Pfizer should be able to leverage the vaccine’s technology for use against other types of disease as well.

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According to Business Insider, Pfizer partner BioNTech’s second-quarter results released on Monday show that demand for its COVID-19 vaccine will be strong into 2022 and beyond. 

Pfizer’s COVID-19 vaccine has helped the company grow its revenue by 61% to $19 billion in the second quarter.  That revenue could continue to grow as vaccines are approved for children, and the potential for a third booster shot is explored, Business Insider reported.

Ashtyn Evans, a healthcare analyst at Edward Jones told Reuters  that Pfizer will be able to use the cash flow from the vaccine “for both internal research and development and for acquisitions to strengthen their pipeline.”

Along with Pfizers, share prices of other vaccine makers like Moderna and Novavax also increased in recent times. Shares of Moderna have soared to a valuation of nearly $200 billion and is now worth more than Merck as it sees revenue explode from its vaccine sales, Business Insider reported. 

On Tuesday Novavax’s share prices were up by 11% after a COVID-19 vaccine delay last week.