June 22, 2024

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Can the 2nd booster of COVID-19 vaccine save Moderna’s stock price?


Can the 2nd booster of COVID-19 vaccine save Moderna’s stock price?

Moderna’s vaccine has gone from being a hot item to being rejected, and the stock price has slipped into a bear market.


As the epidemic slowed, demand for the COVID-19 vaccine fell with it. Shares of many U.S. biotech stocks, including Moderna, have fallen into a bear market. 


Can the 2nd booster of COVID-19 vaccine save Moderna's stock price?


The Global Access to Vaccines Mechanism (COVAX) and the African Union confirmed on April 5th that they have refused to purchase Moderna’s COVID-19 vaccine, reflecting the decline in demand for the COVID-19 vaccine due to the slowdown of the epidemic.

Moderna’s shares opened lower on the 5th in U.S. stocks and are currently down 4.4% at $162 per share. The stock fell into a bear market last quarter and is down nearly 35% this year.


The stock prices of other vaccine factories also weakened simultaneously. The ADR of Germany’s BioNTech (BNT) fell by more than 1% around midday on the US stock market, and has fallen 28.8% this year. Novavax is even worse, currently falling by more than 9%. This year Come to the stock price cut in half.


The reason why the African Union and COVAX no longer purchase vaccines is mainly because the logistics problems of developing countries are still difficult to solve.

In the previous global rush for vaccines, these countries could not win against rich countries in Europe and the United States. Now they still face insufficient funds, people still have doubts about vaccines, and supply chain obstacles, etc., make vaccines unable to be distributed.


Moderna’s mRNA vaccine was in short supply before, but now the situation has reversed, and investors will naturally turn around and leave.


Not only Moderna, but U.S. biotech stocks had their worst performance in years, falling into a bear market last quarter, hit by rising interest rates and a slowdown in acquisitions by Big Pharma.


The sector began to soar in the spring of 2020 as retail investors and hedge funds flocked to the biotech sector, which has come under scrutiny by investors as its scramble to develop vaccines and drugs for Covid-19. Strong demand for biotech stocks has also helped drive a historic boom in 2021 for IPOs and venture capital firm investments.


In the past year, however, the boom has turned into a bear market for biotech stocks. The U.S. biotech index SPDR S&P Biotech ETF fell 19.7% in the first quarter of this year, compared with a 5% decline for the broader U.S. stock market S&P 500 over the same period.

The biotech index has nearly halved since peaking in February 2021, while the S&P 500 has risen 15.7% over the same period.


Biotech stocks that fell sharply included German biopharmaceuticals CureVac and Novavax, whose shares had previously surged on hopes of developing a coronavirus vaccine and drug.

Shares in Atea Pharmaceuticals tumbled by two-thirds in October after a Covid-19 drug the company developed with Roche Holdings failed tests.


Expectations of higher consumer price inflation and higher interest rates since last year have dampened investor enthusiasm for risky companies such as biotechs, which could take years, biotech investors and analysts said.

Develop a promising drug or turn a profit. “It’s a shift in capital allocation from high-risk, very future-oriented targets to lower-risk ones,” said Eli Casdin, founder and chief investment officer of life sciences hedge fund Casdin Capital.






Can the 2nd booster of COVID-19 vaccine save Moderna’s stock price?

(source:internet, reference only)

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