What happened
Coronavirus-related stocks declined sharply on Wednesday, extending their losses following Russia’s announcement on Tuesday that it had developed the world’s first COVID-19 vaccine.
From 11:55 a.m. EDT, shares of Novavax (NASDAQ: NVAX), Heat Biologics (NASDAQ: HTBX), Sorrento Therapeutics (NASDAQ: SRNE), Wax species (NASDAQ: VXRT), en iBio (NEWS: IBIO) were down 20%, 17%, 15%, 14%, and 14%, respectively.
So what
Russian President Vladimir Putin’s statements that Russia was planning to launch a large-scale immunization program after approval of a coronavirus vaccine sent investors into a tizzy. Despite warnings from US and international scientists that Russia’s claims regarding its vaccine were not yet substantiated, many investors decided to sell their shares of COVID-19 vaccine and treatment stocks. That sale seems to be going on today.
Many coronavirus-targeted companies saw their share prices fall sharply on Wednesday. Image Source: Getty Images.
Modern‘s (NASDAQ: MRNA) announcement late Tuesday that it had struck a $ 1.5 billion deal with the U.S. government for its COVID-19 vaccine candidate could also contribute to the decline. Investors in Novavax, Sorrento, Heat Biologics, Vaxart, and iBio may become increasingly concerned that, even if Russia’s claims prove false, its companies may fall behind Moderna – whose stock was around 1% on Wednesday – and other competitors in the race for a vaccine for coronavirus.
Well what
Investors have offered the shares of many companies working in recent months to develop coronavirus vaccines or treatments. Unfortunately, many of these companies will not be successful in their endeavors. Shareholders seem to be adapting their views of Sorrento, Vaxart, Novavax, iBio, Heat Biologics, and other fax machines to reflect this reality. In the process, they offer their profiles with higher risks, and, by extension, lower prices.
