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As major biotech companies try to create a proper coronavirus vaccine, the following stocks just might be strong enough to hedge against the current financial plunge.
The coronavirus epidemic isn’t letting down as many people hope it would. Instead, the number of confirmed cases as well as the mortality rate, are on a steady rise. The number of countries affected by the virus is also increasing steadily with many more countries confirming new cases of infection. The situation is worrisome to health organizations and some are scrambling to create a potent coronavirus vaccine. The likelihood that a coronavirus vaccine will come from a handful of biotech companies seems to be helping their stocks and has confirmed them as a hedge in this crisis. We shall look at a few of them.
Coronavirus Vaccine and Impact on Stocks
Apart from the health sector, the coronavirus has also not been very easy on the financial markets. A lot of companies lost a considerable amount of weight with both the Dow Jones and S&P 500 losing 12% and 11% respectively in just a week. In total, the market lost a cumulative $3.6 trillion, equal to about 694,573,870 Bitcoin.
On the bright side, there might be hope coming to ease some of the tension. The biotech companies and their stocks working on creating a coronavirus vaccine will give some hope to the world and probably also give investors a much-needed hedge against the plunge on Wall Street. Here are some of them.
Gilead Sciences (GILD)
Since the epidemic began, Gilead Sciences Inc (NASDAQ: GILD) was the first to announce a possible treatment for the new coronavirus COVID-19 strain. Gilead’s treatment is through Remdesivir, an antiviral drug that proved effective in fighting Ebola. After a doctor administered the drug with nothing but hope, Remdesivir did a fantastic job of eliminating most major symptoms.
The company is now conducting further tests and has already begun clinical trials in both the U.S. and China. If these trials prove successful and the drug is approved for COVID-19, GILD is in for an amazing 2020.
Inovio Pharmaceuticals (INO)
U.S.-based Inovio Pharmaceuticals Inc (NASDAQ: INO) said it has already created a coronavirus vaccine. Dubbing it INO-4800, the company wants to begin human trials in a few months. Unsurprisingly, Inovio stock is almost 30% this year as the news has made it a lot more valuable. Inovio CEO Joseph Kim even said that the virus sequence allowed the company to create a vaccine “in a matter of a few hours.”
Like the two above, Moderna Inc (NASDAQ: MRNA) stock has also jumped this year. Pulling in gains of more than 32%, the company has been rising on news of its own treatment product. Moderna said that it sent its coronavirus vaccine to the US National Institute of Allergy and Infectious Diseases and it plans to start a clinical trial in April. Moderna’s vaccine was created and sent off to the Institute in 42 days.
Of the biotech companies, Novavax Inc (NASDAQ: NVAX) is easily the biggest mover. Since 2020 began, NVAX has jumped more than 302%. However, efforts at a coronavirus vaccine might not be the only reason Novavax is soaring. Even though it has also said human trials will start soon, its experimental NanoFlu vaccine and the success people hope for has spiked NVAX stock.
Analysts predict that if successful, the vaccine will pull a few billion annually for the company.
Regeneron Pharmaceuticals (REGN)
Regeneron’s efforts at a coronavirus vaccine is somewhat similar to that of Gilead Sciences. Regeneron Pharmaceuticals Inc (NASDAQ: REGN) is building on Ebola knowledge, to create a potent weapon for COVID-19. Just like the others as well, it should begin clinical trials before November.
This year alone REGN has jumped over 18% in response to its efforts. This is interesting when compared to the mere 2.48% it brought in for the last 12 months
The above companies seem like a trustworthy hedge for the uncertainty COVID-19 brings to the rest of the financial market. However, experts are warning that creating and approving a vaccine isn’t a straight road and might take another few years. Even then, efforts must be coordinated on a global scale, a very difficult task.
Let us also mention that recently Israel has stated that it is working hard on the coronavirus vaccine. While the virus has already killed around 3,000 people, a research institute in Israel has claimed that its scientists are just weeks away from offering a vaccine to the world.