The type of vaccine it’s most famous for might be cast in a very unflattering light in the very near future..
A star stock during the pandemic era wasn’t shining so brightly on Friday. On a media report that the current presidential administration is preparing to link a set of fatalities to Covid vaccines, BioNTech‘s (BNTX -7.35%) share price declined by 7% across that day’s trading session. The biotech company’s decline was particularly notable given the essentially flat-line performance of the S&P 500 index.
Negative accounts
That morning, The Washington Post published an article stating that healthcare officials in the Trump administration were aiming to link the deaths of 25 children to coronavirus vaccines. BioNTech is a co-developer of a top vaccine, Comirnaty, aimed at preventing the disease’s spread (its partner in the effort was U.S. pharmaceutical giant Pfizer).
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Citing four unnamed people “familiar with the situation,” this effort will be based on findings that were apparently filed with the federal government’s Vaccine Adverse Event Reporting System. The platform contains unverified accounts of experiences and events following the administration of jabs.
The newspaper added that the government’s Centers for Disease Control and Prevention (CDC) stresses that the system isn’t intended to determine if any vaccine injections result in fatalities. According to the CDC, such a judgement requires significant investigation by scientific and medical professionals.
Danger of reputational damage
The Post wrote that administration officials aim to present their findings next week to a CDC advisory panel. That panel is considering recommendations for new Covid vaccines.
BioNTech might be particularly exposed in such a move, as it is a much smaller company than its big U.S. partner Pfizer. If it becomes seen as a developer of a supposedly harmful product, its reputation could suffer irreparably.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends BioNTech Se. The Motley Fool has a disclosure policy.