Shares of Pfizer (PFE) and BioNTech (BNTX) are on the rise on Monday after the companies announced that their mRNA-based vaccine candidate against SARS-CoV-2 has demonstrated evidence of efficacy against COVID-19. The news also sent Moderna (MRNA) higher on hopes for the company's similar vaccine candidate and lifted the market broadly given the hope about what the vaccine could mean for a return to normalcy.

VACCINE 90% EFFECTIVE: Pfizer and BioNTech announced their mRNA-based vaccine candidate, BNT162b2, against SARS-CoV-2 has demonstrated evidence of efficacy against COVID-19 in participants without prior evidence of SARS-CoV-2 infection, based on the first interim efficacy analysis conducted on November 8, 2020, by an external, independent Data Monitoring Committee from the Phase 3 clinical study.

After a discussion with the FDA, the companies recently elected to drop the 32-case interim analysis and conduct the first interim analysis at a minimum of 62 cases. Upon the conclusion of those discussions, the evaluable case count reached 94 and the DMC performed its first analysis on all cases. The case split between vaccinated individuals and those who received the placebo indicates a vaccine efficacy rate above 90%, at seven days after the second dose. This means that protection is achieved 28 days after the initiation of the vaccination, which consists of a 2-dose schedule. As the study continues, the final vaccine efficacy percentage may vary.

The DMC has not reported any serious safety concerns and recommends that the study continues to collect additional safety and efficacy data as planned. The data will be discussed with regulatory authorities worldwide. Pfizer and BioNTech are continuing to accumulate safety data and currently estimate that a median of two months of safety data following the second - and final - dose of the vaccine candidate - the amount of safety data specified by the FDA in its guidance for potential Emergency Use Authorization - will be available by the third week of November. Additionally, participants will continue to be monitored for long-term protection and safety for an additional two years after their second dose.

Along with the efficacy data generated from the clinical trial, Pfizer and BioNTech are working to prepare the necessary safety and manufacturing data to submit to the FDA to demonstrate the safety and quality of the vaccine product produced. Based on supply projections, the companies expect to supply globally up to 50M vaccine doses in 2020 and manufacture up to 1.3B doses in 2021. Pfizer and BioNTech plan to submit data from the full Phase 3 trial for scientific peer-review publication.

POSITIVE READ-THROUGH FOR MODERNA: Following the news, Piper Sandler analyst Edward Tenthoff said he believes this has a positive read-through to Moderna's mRNA-1273 vaccine candidate, which is also based on messenger RNA technology. If Moderna's first interim Phase 3 COVE data this month is positive, he expects the shares to trade higher and for the company to seek emergency use authorization by year-end. Tenthoff reiterated an Overweight rating and a price target of $136 on Moderna shares.

OTHERS TO WATCH: The Pfizer/BioNTech vaccine news is generating optimism that the economy could rebound swiftly in 2021, helping U.S. stocks march to all-time highs Monday. Several sectors have been severely impacted by the pandemic and some companies whose businesses were hurt by the COVID crisis saw their share prices jump in early trading.

• American Airlines (AAL) has advanced about 14% to $13.04;
• United Airlines (UAL) has gained over 15% to $40.03;
• Delta Air Lines (DAL) has risen almost 12% to $35.10;
• JetBlue (JBLU) has advanced more than 20% to $14.84;
• Southwest (LUV) has gained about 13% to $45.07;
• Royal Caribbean (RCL) has jumped almost 25% to $73.18;
• Norwegian Cruise Line (NCLH) has advanced about 23% to $20.85;
• Carnival (CCL) has risen over 32% to $18.32;
• Marriott (MAR) has gained almost 13% to $116.91;
• Wynn (WYNN) has jumped over 25% to $100.26;
• Disney (DIS) has advanced more than 9% to $139.20.

On the other hand, companies that have been benefitting from the work-from-home and stay-at-home economy sold off.

• Zoom Video (ZM) has dropped over 16% to $418.24;
• Peloton (PTON) has slid about 16% to $105.54;
• Netflix (NFLX) has slipped almost 6% to $485.45;

Also under pressure are companies with COVID-19 tests. Piper Sandler analyst Steven Mah noted that they have sold off 30%-plus following positive vaccine news from Pfizer and BioNTech. The analyst believes the selloff is an overreaction and presents a buying opportunity for "highly-differentiated testing companies" such as Quidel (QDEL), Fulgent Genetics (FLGT), Fluidigm (FLDM), Luminex (LMNX), and Meridian Bioscience (VIVO). Diagnostics remains the "primary front-line defense with the Biden Administration naming Testing the First Point of their Seven-Point COVID-19 Plan," Mah added. The analyst would be a buyer of companies with COVID-19 testing exposure on Monday's pullback.

PRICE ACTION: In morning trading, shares of Pfizer have gained over 8% to $39.41, while BioNTech's stock has advanced almost 11% to $101.72. Also higher, Moderna has risen more than 6% to $77.15.