Vaccine Stocks Rise Sharply as New Omicron Variant Has Big Pharma Licking Its Chops
As news of yet another COVID-19 variant sweeps across the globe, stocks, in general, have reacted negatively to the news, except for these four vaccine stocks.
Since the omicron variant, which originated in southern Africa, began popping up in various countries worldwide, the S&P 500 (SPX) has fallen from its all-time high of 4,701 to 4,567, a drop of 2.8%. However, while the overall market was retreating, investors were bidding up some of the companies developing life-saving tools in the fight against COVID-19.
Pfizer (PFE)
Deservedly so, the Pfizer (NYSE: PFE) vaccine is considered the gold standard among the available COVID-19 vaccines. The 91% efficacy in preventing infection after a 2nd dose has proven to be a game-changer in the fight against the virus. The company also has an anti-COVID pill in development that has proven equally adept at preventing infection.
BioNTech (BNTX)
A German pharmaceutical company, BioNTech (NASDAQ: BNTX), developed the Pfizer vaccine; Pfizer merely handled the testing and logistics. With omicron being potentially resistant to current vaccines, BioNTech’s world-class research and development team should prove instrumental in combating it.
Moderna (MRNA)
Another very successful vaccine was the one developed by Moderna (NASDAQ: MRNA). Along with Pfizer, it was one of the first vaccines widely available and is still one of the most requested vaccines for those seeking both their initial shots and their follow-up boosters. If the world goes back into lockdown due to Omicron, there should be even more demand for the Moderna vaccine.
Novavax (NVAX)
While their vaccine is a few months behind the vaccines from other significant drugmakers, Novavax’s (NASDAQ: NVAX) vaccine is just as effective. The vaccine has demonstrated an efficacy of 89% against COVID-19 infection. The drug is still undergoing clinical trials before approval in the U.S., but it is being distributed internationally, including in South Korea and India. While the stock popped nearly 9% after omicron came onto the scene, it has since given back those gains and more.
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
