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Pfizer ETFs to Rise on FDA's EUA for COVID-19 Oral Antiviral Pill

Here we highlight some ETFs with high exposure to Pfizer (PFE) that can gain from the receipt of EUA for the antiviral COVID-19 pill.

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This story originally appeared on Zacks

Investors have another reason to cheer the Pfizer Inc. PFE stock as it has been awarded the emergency use authorization (EUA) for its antiviral COVID-19 pill, PAXLOVID. According to the company, PAXLOVID (nirmatrelvir [PF-07321332] tablets and ritonavir tablets) can be efficiently used for the treatment of mild-to-moderate COVID-19 in patients at least 12 years of age and older and weighing at least 40 kg [88 lbs]. The patients with positive results of direct SARS-CoV-2 viral testing and at high risk for progression to severe COVID-19, including hospitalization or death, can be prescribed Pfizer’s antiviral pill. 

- Zacks

Market participants willing to ride Pfizer’s gains from the latest nod on the antiviral COVID-19 pill can consider ETFs like iShares U.S. Pharmaceuticals ETF (IHE), First Trust Morningstar Dividend Leaders Index Fund (FDL), iShares Evolved U.S. Innovative Healthcare ETF (IEIH) and Invesco Dynamic Pharmaceuticals ETF (PJP).

The FDA granted the EUA based on clinical data from the Phase 2/3 EPIC-HR (Evaluation of Protease Inhibition for COVID-19 in High-Risk Patients) trial. The trial enrolled non-hospitalized adults aged 18 and older with confirmed COVID-19 who are at high risk of serious illness. According to Pfizer, data also showed an 89% decline in the chances of COVID-related hospitalization or death from any cause in adults who were provided with PAXLOVID, against placebo, within three days of symptom onset (primary endpoint).

Pfizer can begin delivering PAXLOVIDin the United States on an immediate basis. It is worth noting that in November, Pfizer had informed about signing an agreement with the U.S. government to supply 10 million treatment courses of PAXLOVID. The delivery shall be completed in 2022.

Globally, this antiviral COVID-19 pill is getting recognition. The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) had issued advice suggesting PAXLOVID be applied for treating adults with COVID-19 who do not need supplemental oxygen support and are at higher risk of severe diseases.

ETFs to Shine Bright

Considering the important role played by coronavirus vaccines in Pfizer’s recent earnings results, the latest developments can be a positive for the stock. Interestingly, Pfizer has earned revenues of $24.3 billion in the first nine months from the sale of Comirnaty. It is expected to witness total sales of roughly $36 billion at the end of 2021. The early receipt of regulatory authorization for pediatrics and adolescents in the United States has put Pfizer and Germany-based company BioNTech (BNTX) in an advantageous position to gain a lead in the COVID-19 vaccine space.

Pfizer and BioNTech have already shipped 2 billion doses to 152 countries. They expect to manufacture up to 3 billion doses by the end of December 2021 and deliver 2.3 billion doses. The vaccine was approved for younger patients (5-17 years), while a booster vaccine dose was approved in the United States in 2021.

Thus, let’s take a look at ETFs with high exposure to Pfizer that can gain from the recent development:

iShares U.S. Pharmaceuticals ETF IHE

iShares U.S. Pharmaceuticals ETF provides exposure to U.S. companies that manufacture prescription or over-the-counter drugs or vaccines.

iShares U.S. Pharmaceuticals ETF 45 stocks in its basket, with Pfizer making up 23.8% share. The product has AUM of about $393.3 million. iShares U.S. Pharmaceuticals ETF charges 42 basis points (bps) in fees and expenses (read: Top ETF Stories of November).

First Trust Morningstar Dividend Leaders Index Fund FDL

First Trust Morningstar Dividend Leaders Index Fund replicates as closely as possible, before fees and expenses, the price and yield of the Morningstar Dividend Leaders Index and holds 100 stocks in its basket.

Pfizer holds 6.5% weight in the fund. The product has amassed $1.74 billion in its asset base. First Trust Morningstar Dividend Leaders Index Fund has an expense ratio of 0.45% (read: 5 Best-Performing ETFs of December).

iShares Evolved U.S. Innovative Healthcare ETF IEIH

iShares Evolved U.S. Innovative Healthcare ETF employs data science techniques to identify companies with exposure to the innovative healthcare sector and holds 248 stocks in its basket, with Pfizer making up for a 8.8% share.

iShares Evolved U.S. Innovative Healthcare has AUM of about $42.5 million. The fund charges 18 bps in fees and expenses (read: Warm Up Your Portfolio With These ETFs This Winter).

Invesco Dynamic Pharmaceuticals ETF PJP

Invesco Dynamic Pharmaceuticals ETF seeks investment results that generally correspond to the price and yield, before fees and expenses, of the Dynamic Pharmaceutical Intellidex Index and holds 27 stocks in its basket, with Pfizer making up for a 6.5% share.

Invesco Dynamic Pharmaceuticals ETF has AUM of about $432.9 million. The fund charges 58 bps in fees and expenses.



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Pfizer Inc. (PFE): Free Stock Analysis Report

 

Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports

 

iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports

 

First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports

 

iShares Evolved U.S. Innovative Healthcare ETF (IEIH): ETF Research Reports

 

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