Why Are Investors Looking Into Biotechnicians Working on the Coronavirus Vaccine?
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COVID-19, the contagious coronavirus has gone worse during the month of March.It continues to spread across the world, and its consequences are felt by the financial markets too. The investors are clearing out their risk assets because of the fear that the pandemic will lead to a global economic breakdown.
Amidst the chaos, several biotech companies have started working on vaccines and drugs to contain the virus, causing investors to increase the prices of their shares in the middle of a market breakdown.
Companies are hopeful that their efforts to develop a cure and viable prevention for the COVID-19 will prove to be fruitful at some point. During the month of February, VIR Biotechnology, experienced a spike of 111% in sales, while Novavax saw a surge of 91%.
According to Alan Carr, Needham’s virus analyst, at least 12 biotech companies have announced their initiative for a drug development program to combat the virus and a few of them will make it into the clinical testing phase within two to three months.
These programs comprise of medications and vaccines that have already been approved for viral previously, unapproved medicines for COVID-19 that are under development, and recently discovered monoclonal antibodies and vaccines.
Inovio Pharmaceuticals experienced a 37% surge in shares ever since they announced the commencement of their new vaccine development program in January.
However, medicinal experts and investment magnates have pointed out that it could take years for Inovio to introduce a cure for the contagious and deadly coronavirus. Investors who are bidding up for Inovio’s stocks should stay cautious amid the rife conjecture.
What Expert Analysts Have to Say
Morgan Stanley is optimistic about Moderna Therapeutics for the vaccine they are working on to treat the Coronavirus.
According to Matthew Harrison, the Head of Biotech Industry Research at Morgan Stanley, Moderna has a competitive advantage over drug programs from other biotech companies because they may be able to identify the immunogenic part of the COVID-19 antigens.
Harrison is also positive about Regeneron, agreeing that its latest technology of screening could be able to generate antibodies to protect people against the epidemic. According to him, even during the Ebola pandemic, Regeneron moved to the clinical testing and validation phase within just 6 months.
What This Means for Investors?
If you’re planning to put your money into something that would offer promising returns in the long run, gold is a safer and more durable option. While it’s a good time to invest in the stocks of biotech companies, there’s still a lot of uncertainty when it comes to returns.