The booster dose of the Covid-19 coronavirus vaccine is good news for two Spanish companies in the pharmaceutical industry, Rovi and Reig Jofre, manufacturers of Moderna and Johnson & Johnson (Janssen) preparations, respectively.
Specifically, the Japanese authorities have approved the booster shot of the American biotechnology vaccine Moderna against Covid-19, an inoculation that will be carried out to the population eight months after the second dose is given.
Moderna is the second laboratory to obtain the authorization of the booster dose in the country of the rising sun, after the also American Pfizer received the approval of the same last month.
“Positive news increases the size of the potential market and benefits Rovi, which manufactures Moderna’s vaccine and distributes it, among other countries, to Japan,” Bankinter analysts commented after this approval was known.
Reig Jofre will manufacture the Janssen vaccine at its Barcelona plant
In the case of Reig Jofre, he is also benefited by the news that the Committee for Human Medicines of the EMA (European Medicines Agency or European Medicines Agency, in Spanish) recommends the booster dose of the Johnson & Johnson vaccine ( marketed by the multinational laboratory, Janssen).
The verdict of this committee is not binding, but it is hoped that the EMA will follow its recommendation and authorize the use of the second dose of Johnson & Johnson (it is the only single-dose vaccine on the market).
The booster dose can be used in people over 18 years of age two months after administering the first inoculation.
Good news for Reig Jofre
“Expected news after the recent approval of the booster doses for Pfizer and Moderna vaccines,” Bankinter analysts say in a note.
“Our assessment is positive, it increases the size of the potential market and benefits Reig Jofre, who we hope will produce the Johnson & Johnson vaccine from 2022, once its new factory in Barcelona starts up”, they add.
Rovi, free uphill
Beyond the impact that these two news items may have on the price of both companies, the truth is that Rovi has had an excellent year.
The value is in free rise. In total, it scales 77 percent in the stock market this year, adding to the 55 that appreciated in 2020.
This vertical rise has reduced the company’s remaining potential to 2.9 percent, according to the consensus of analysts, who place the company’s target price at 69.34 euros, compared to 67.40 at which is currently listed.
Even so, the consensus remains very bullish on the value. 83.3 percent recommend buying (10 analysts); 16.7 percent keep (2 analysts) and no analyst advises to sell.
Correction in Reig Jofre after hitting all-time highs on February 12
The case of Reig Jofre is quite different. The pandemic triggered its price from around 2 euros to the all-time highs that it touched on February 12 at 6.18 euros.
But, after scoring a very good first quarter of the year (with a revaluation of 37.59 percent, which joined the additional 74 percent it had registered in 2020), the price has collapsed.
Investors have chosen to take profits from the second quarter and, in total, it records a 20 percent loss for the year as a whole.
In terms of analyst recommendations, it is a value very little followed, so Bloomberg does not offer consensus.