Source: PaxForex Premium Analytics Portal, Fundamental Insight

When we think of Pfizer's coronavirus vaccine, we think of stunning results. The company stunned the global medical community when it reported an overall efficacy of more than 90% in a six-month follow-up of the Phase 3 clinical trial.

Pfizer has fully vaccinated more than 86 million Americans and is the leading supplier of vaccines in other countries - such as Israel. And speaking of Israel, that country announced the news last week that draws a different picture of the effectiveness of the Pfizer vaccine. At first glance, this may seem like bad news. But it may not turn out to be such negative news. And in fact, it could lead to more revenue for Pfizer. Let's take a closer look at this issue.

First, the news. According to the Israeli Ministry of Health, the effectiveness of the Pfizer vaccine in the overall prevention of coronavirus dropped to 39% in the one month ended July 17.

This is down from 64% between June 6 and the first days of July. Efficacy for severe forms of the disease declined much more slowly. It dropped to 91% from 93% in the previous report. At the same time, the highly contagious delta variant is gaining momentum.

That's why investors may be worried at first: The numbers alone suggest that the vaccine is not working well against today's variants of the coronavirus - primarily delta. And that's reason enough for governments to think twice before ordering more doses of the Pfizer vaccine.

But here's why investors shouldn't worry. First, the efficacy of preventing severe forms of coronavirus remains extremely high. It would be great to prevent every coronavirus infection. But it's more important to prevent the most severe infections and fatalities. Pfizer's vaccine continues to do just that.

Further, we must look beyond the numbers. Earlier this year, Israel began a rapid and aggressive distribution of the vaccine. Many seniors and people with comorbidities received the vaccine in January. After six months, immunity is likely to weaken.

Thus, the problem we face may not be the effectiveness of the vaccine against the delta variant. Instead, it may be a question of diminished immunity. And that shouldn't come as a surprise. A few months ago, Pfizer CEO Albert Burla said in an interview with CNBC that revaccination would probably be required six to twelve months after the first vaccination. He even mentioned that different variations could be the determining factor.

This is consistent with the situation in Israel. A few months ago, when the vaccination was very recent, the efficacy looked better. Now, immunity has declined over time, and variants have become more severe. Thus, the need for revaccination is increasing.

And this is not a unique detail to Pfizer. Competing vaccine manufacturer Moderna also talks about the need for revaccination around the same time frame.

This brings me to the question of how all of this could lead to increased revenues for Pfizer. The situation in Israel looks like real proof that revaccination is needed now or soon -- at least for people who were vaccinated earlier this year. And that applies to vaccinated people anywhere in the world.

Pfizer said this month that it plans to get regulatory approval to administer the third dose of its vaccine as revaccination. Health officials were not immediately supportive of the idea. The U.S. Food and Drug Administration and the Centers for Disease Control and Prevention said around the same time as Pfizer that everyone who is fully vaccinated does not need revaccination now. But due to the rapid increase in cases, that opinion may change sooner rather than later.

If that happens, Pfizer vaccine doses could disappear from the shelves. If every American who has been fully vaccinated by Pfizer decides to revaccinate, we would get more than 86 million doses of the vaccine. At the price the U.S. originally paid for Pfizer vaccines, that amounts to $1.7 billion.

Of course, that doesn't mean the U.S. will immediately order an additional $1.7 billion worth of doses. But as current supplies decline, the country can quickly restock - and stock up for the next round of vaccinations. It could happen not only in the U.S. but around the world.

This move will take some time. Increased orders and revenues could happen next year and beyond. But already the stage seems to be set for this development. It is good news for those looking for maximum protection against COVID-19 - and good news for Pfizer and its investors.

While the price is above 39.30, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 41.05
• Take Profit 1: 43.10
• Take Profit 2: 43.80

Alternative scenario:

If the level 39.30 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 39.30
• Take Profit 1: 38.20
• Take Profit 2: 37.50