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While tech shares are suffering drops, coronavirus stocks are soaring, The pharma companies are actively working on the development of a new vaccine.
Lately, we have been reporting a lot about tech companies suffering significant drops in stocks amid spreading coronavirus concerns. Its high time to have a look at those market players who are benefiting in the volatile conditions. Under the circumstances given, the only winners are so-called coronavirus stocks. Haven stocks and health care shares are soaring, and companies developing vaccines are enjoying the existing situation.
A prime example of those lucky ones is Gilead Sciences Inc (NASDAQ: GILD). It is a research-based biopharmaceutical company focused on the discovery, development, and commercialization of innovative medicines. Yesterday, its stock rose by 7.2% and reached over $78. However, at the time of writing, the stock is trading at $73.47 (-1.65%). The biotech giant’s market cap is $92.69 billion. On Tuesday, shares of Gilead were up 3% and nearly 5% on Monday.
GILD stock is soaring as a result of the company’s recent announcement. The giant has been working on the coronavirus vaccine and yesterday, it began two late-stage clinical studies of its experimental antiviral drug. According to Gilead Sciences, their remdesivir drug can help in treating adults with coronavirus disease COVID-19. To carry out the trials of the drug, it will engage 1,000 patients. Most of them are from Asian countries, but other parts of the world that have suffered will also participate.
Several early-stage clinical studies of the remdesivir drug have already taken place. Currently, Gilead Sciences is evaluating the vaccine in two studies in China. Besides, it has begun a study in the US under the leadership of the National Institute of Allergy and Infectious Diseases (NIAID).
Many believe that Gilead Sciences will manage to deal with coronavirus. The company will report the results of its studies of the drug in April. If they are positive, the company will become a hero. And obviously, all countries will be unwilling to wait for any regulatory approvals.
Other Lucky Coronavirus Stocks
Speaking of other coronavirus stocks rising, those are Moderna Inc (NASDAQ: MRNA), Novavax Inc (NASDAQ: NVAX), and Inovio Pharmaceuticals Inc (NASDAQ: INO). All of them have jumped today. In pre-market trading, Inovio stock rose 16.5%. Moderna stock soared as much as 25%, while Novavax stock gained 26.9%. However, after the opening, the situation has changed a bit. While NVAX and INO are still growing. MRNA has started its way down. By the moment of writing, it has lost over 11.
Moderna shipped ampules of a vaccine for the coronavirus to the National Institutes of Health’s Institute of Allergy and Infectious Diseases for clinical testing. As a result, its stock grew 28% on Tuesday. On Wednesday, Moderna stock rocketed by about 23 %. The jump came after the company boasted the progress in making another experimental vaccine for a virus tied to birth defects is going at a faster pace than expected.
Coronavirus Reached the U.S., Dow Futures Drop
Recently, the first coronavirus case appeared in Northern California. It caused more fears to spread. As a result, people with flu want to get a test to confirm the coronavirus, therefore, hospitals are overcrowded.
But the virus not only brought panic in the U.S. It has also led to Dow Futures dropping 400 points in the early hours of trading today, with further tanking later. Dow Jones Industrial Average futures are today down 0.9%. S&P 500 futures are off 0.9% as well. Nasdaq Composite futures have also fallen 0.9%.
In this alarm situations, analysts can not make exact predictions. But we may just hope that the world will find the vaccine against the disease and forget about the bug going round. When it happens, the market will be quick to react. Therefore, it doesn’t matter in which spheres companies are operating, as all of them are interested in the eradication of the disease.