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China Sees Worst Covid Outbreak Yet, Vaccine Makers Stocks Surge

UTC by Ibukun Ogundare · 3 min read
China Sees Worst Covid Outbreak Yet, Vaccine Makers Stocks Surge
Photo: Shutterstock

As the global health crisis persists, vaccine makers are looking forward to huge revenues this year.

As China experiences a troubling outbreak of the coronavirus, vaccine makers in the country are beginning to see a surge in stocks. The recent outbreak resulting from the Omicron variant is the worst since March 2020.

On the 14th of March, shares of vaccine makers, including US-based Pfizer (NYSE: PFE), went bullish 4% to close at $52.25. Its German manufacturing partner BioNTech (NASDAQ: BNTX) also pumped 12% to close $151.92. Similarly, Johnson & Johnson (NYSE: JNJ) increased 1.38% to $171.69, while Moderna (NASDAQ: MRNA) hiked over 8%, closing at $150.07. When the market opened, MRNA surged almost 20% to $166.75. The vaccine makers saw a spike in their shares despite a broader market fall due to the impact of the Russia-Ukraine war.

As the global health crisis persists, vaccine makers are looking forward to huge revenues this year. Moderna expects at least $19 billion in vaccine sales for 2022, while Pfizer estimates $32 billion in revenue for its shots. On the other hand, Johnson & Johnson forecasts $3.5 billion in sales of Covid-19 vaccines in 2022.

The initial production of Covid-19 vaccines was in 2020, with the vaccine makers beginning testing in China and health care workers commencing distribution. Moderna, Pfizer, Johnson & Johnson, BioNTech, among other pharmaceutical and biotechnology firms, responded to the vaccination orders and have since improved. According to Biospace, these Covid-19 vaccine makers have topped the list of innovative biotechs in 2021. Since the recent outbreak in China, shares of Covid-19 vaccine makers have constantly seen a rise.

Increased Covid-19 Cases in China Result in Stock Spike for Vaccine Makers

According to China’s National Health Commission, Mainland China had reported over 1,400 new Covid-19 cases as of the 13th of March. Although the data is low compared to international standards, it’s the highest in China since March 2020. Several cities in China have placed new restrictive measures on business activities to subdue the outbreak. For instance, Toyota and Volkswagen were hit by Covid-19 restrictions as Changchun began a lockdown. Schools in China’s largest city and finance center Shanghai have resumed online classes. Shenzhen, a special economic zone in Southern China, has urged companies to close all expendable businesses or have employees work remotely. Foxconn, Amazon (NASDAQ: AMZN) supplier, has stopped production in Shenzhen. However, China has not reported any new Covid deaths in recent times.

Experts posit that the outbreak and restrictions have steered fear amongst Chinese shareholders resulting in more revenue for vaccine makers. There are worries that the health crisis will last longer than expected.

Business News, Market News, News, Stocks
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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