Biotech Stock Market Is Under Coronavirus Effect as Companies Are Working on Vaccine

Updated on Mar 6, 2020 at 5:44 pm UTC by Steve Muchoki · 3 min read
Biotech Stock Market Is Under Coronavirus Effect as Companies Are Working on Vaccine
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As most stock markets continue bleeding out due to the coronavirus outbreak, three biotech stocks have been defying the urge as the companies are working on a vaccine or a cure for the deadly coronavirus.

Three major biotech companies, which are working on developing a vaccine or cure for the deadly coronavirus, have seen their stock markets defy the overall market plunge. The select biotech companies have either announced testing the vaccine on human victims or in the process of verifying a vaccine with the respective regulatory body.

The three biotech companies include Moderna Inc (NASDAQ: MRNA), Novavax Inc (NASDAQ: NVAX) and Gilead Sciences Inc (NASDAQ: GILD). Most of them had previously not recovered fully from the 2008 financial crisis, which saw them in a decade of losing streak. Thanks to the coronavirus outbreak, their stocks are now showing signs of pushing even higher to retest the all-time highs.

Over the past week, the Dow Jones futures and its counterpart benchmark S&P 500 have received the biggest coronavirus blow as they continue into the correction mode. Analysts are warning the correction might continue if the virus is not tamed soon enough, and with the uncertainty plus fast spread into other countries from ground zero, China, the stock market will continue bleeding out.

However, the so perceived safe-havens are enjoying the existence of the virus as they continue soaring up. With the investors moving with pace to secure a pie in the safe-havens, their demand increases sharply as hence the uptick in their market price.

Deeper Delve into Biotech Stock Market Defying Coronavirus Outbreak

Moderna Inc (MRNA) its stocks sharply rise after the company announced it had sent its vaccine to U.S. government researches. As a result, the stock market moved from $18.55 to trade around $29 in just a day, which represented a 56% change. At the moment of writing, the stock is in red, however. It is trading at $22.88 (-12.54%).

The trial vaccine labeled as mRNA-1273 is in the first phase of testing and could end up taking a year in verifying and going into mass production. Due to the logistics involved, it is not known if the virus will still be a global threat or it will have disappeared on its own.

The other is Novavax (NVAX) is a Maryland-based biotech company, which successfully developed the vaccine for MERS and also for SARS. The company announced on Wednesday that it is planning on using its trial vaccine on humans affected by the coronavirus this spring. As a result, the shares shot up nearly 41% from $7.95 to $11.20. Today, the stock keeps growing. Its price is $14.47 (+22.63%).

The last but not the least is Gilead Sciences (GILD) which has developed a vaccine dubbed Remdesivir. Earlier in the week, the WHO gave a good recommendation on the vaccine which has seen the U.S. government use on a patient with the mild condition of the coronavirus. As a result, its stock market price rose by %7 to trade above $70. However, at the moment of writing the GILD is trading at $67.80 (-6.69%).

Business, Editor's Choice, Markets, News, Stocks
Steve Muchoki
Author: Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery!

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