Major Covid Vaccine Stocks Soar Amid Rising Concerns Over New Variants

As reports emerge about the discovery of new Covid variants in the United States, makers of Covid vaccines are seeing a surge in their stocks. With the anticipation of new immunization sensitization as Covid cases continue to increase, this rise in vaccine stocks brings a glimmer of hope for these companies.

Leading the way is Novavax Inc (NASDAQ: NVAX), which experienced the highest jump, closing more than 13% higher on the day. Moderna Inc (NASDAQ: MRNA) also saw a significant rise of 9%. Additionally, BioNTech SE (NASDAQ: BNTX) climbed by 6%, and Pfizer Inc (NYSE: PFE) followed suit with nearly 1% growth.

While these companies have experienced a downturn in their stock prices earlier this year, with each of them losing at least 20% since January, the emergence of new variants has the potential to boost their stocks once again.

The Impact of New Covid Strains on Vaccine Stocks

One pressing concern for biotech companies is the existence of various Covid virus variants. For instance, the BA.2.86 omicron strain has been detected in several parts of the US, Denmark, Israel, and the UK. Although the number of cases is currently limited, both the World Health Organization and the United States Centers for Disease Control and Prevention are closely monitoring this strain due to its 36 new mutations distinct from the XBB.1.5 variant.

While BA.2.86 may not be more severe or easily transmissible, its spread could both pressure and boost Covid vaccine companies simultaneously. However, it remains uncertain whether the new shots developed for Eris, a new strain found in the US, would also be effective against BA.2.86.

In response to the evolving situation, Covid vaccine companies are already working on designing new shots specifically tailored for different strains. Novavax, Pfizer, and Moderna have already expressed confidence that their new shots will be capable of effectively combating Eris, which is a variation of the omicron variant.

Insights into Novavax and Moderna Stocks

Last year, Novavax reported its first profitable quarter in Q1 and revealed plans for a global rollout of its Covid vaccine. Despite the significant improvement in net income, which rose to $203 million compared to a $222 million loss in the same quarter the previous year, Novavax fell short of revenue and earnings estimates. However, the company has now projected a full-year sales range of up to $1.6 billion, leading to a 30% surge in its stock following the announcement of Q1 results and news about new Covid and flu vaccines.

Moderna, on the other hand, has experienced a mixed performance recently. While the Marketwatch data shows a 15% climb in MRNA stock over the last 5 days, other metrics indicate a downward trajectory. In the past month, MRNA has fallen almost 9% and over three months, it has declined by 19%. Since January, Moderna has seen a significant drop of more than 38% in its stock value.