New Covid Variants Boost Shares of Vaccine Makers
As new variants of the Covid virus continue to emerge in the United States, shares of Covid vaccine makers surged on Monday in anticipation of the rollout of updated shots this fall. Novavax saw a significant increase of over 13% in their stock, while Moderna’s stock rose more than 9%. BioNTech, in partnership with Pfizer, also experienced a rise of nearly 7% in its shares. Pfizer’s stock, though modest, edged 1% higher.
These gains come as welcome news for the vaccine makers, who have faced a challenging few months with declining sales of Covid shots and treatments in the US. All four companies have witnessed a decline of more than 20% in their share values this year. However, the upcoming launch of brand-new shots, combined with the emergence of new variants of the virus, has renewed Wall Street’s enthusiasm for these vaccine manufacturers.
One of the new variants making headlines is EG.5, also known as “Eris,” which has now become the dominant Covid strain in the US. While health experts have noted that Eris may possess a slight advantage in evading immunity from previous vaccinations and infections, it is not expected to cause more severe illness. Moderna, Pfizer, and Novavax have stated that their new shots, designed to target a related omicron subvariant called XBB.1.5, should provide protection against Eris.
On the other hand, the protection offered by these new shots against a different omicron strain known as BA.2.86 remains uncertain. This particular variant has been identified in small numbers in the US, UK, Denmark, and Israel. Both the World Health Organization and the US Centers for Disease Control and Prevention are monitoring BA.2.86 due to its 36 distinct mutations from the currently dominant XBB.1.5 variant.
While there is currently no evidence to suggest that BA.2.86 spreads more rapidly or causes more severe infections than its predecessors, its emergence could potentially increase the demand for vaccines and treatments that can provide some level of protection against this highly mutated variant. As a result, the shares of vaccine makers are anticipated to continue their upward trajectory as the global battle against Covid and its evolving variants persists.