Vaccine stocks BioNTech (BNTX) and Moderna (MRNA) crumbled Monday as early reports suggested the omicron variant might lead to less severe cases of Covid.
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SVB Leerink analyst Geoffrey Porges examined cases in South Africa. Although the rate of positive cases has “exploded” to 24% out of all tests conducted over the last several days, hospitalizations aren’t keeping pace, he said. This means people are contracting Covid but aren’t ill enough to require hospitalization.
“The picture is quite encouraging — it appears that hospitalizations are not increasing at anything like the increase in the number of diagnoses,” he said in a report to clients. “Hospitalizations are not even increasing at the same pace as positive tests, even on a lagged basis.”
Investors sent vaccine stocks diving. The analysis suggests the omicron surge might not encourage holdouts to seek Covid shots. Meanwhile, Sen. Bernie Sanders called for companies to share their shots with the world. Last week, a handful of investors in Pfizer and Moderna “become $10 billion richer as news about the omicron variant spread,” he tweeted.
On today’s stock market, vaccine stocks plummeted. BioNTech stock plunged 18.7% to close at 279.83. Moderna stock lost 13.5% to finish at 265.33. Pfizer (PFE) stock toppled 5.1% to 51.48. Novavax (NVAX) stock tumbled 11.6% to 141.86. Novavax recently gained its first authorizations in Indonesia and the Philippines.
Vaccine Stocks: Shots For Children
The news comes shortly after Covid vaccines launched in the U.S. and other countries for children as young as age 5. The Pfizer-BioNTech shot gained its authorization in late October and launched in November.
Now, nearly 64% of the U.S. population age 5 and up is fully vaccinated against Covid, according to the Centers for Disease Control and Prevention.
But concerns surround Covid shots in children. In the December IBD/TIPP Poll, a third of those surveyed opposed Covid vaccines for young children. Less than two-thirds — 57% — supported the move and the remaining 10% were unsure. That could also put a damper on vaccine stocks.
Pfizer and BioNTech’s vaccine has been tied to heart inflammation called myocarditis in boys and young men. Those cases occurred in older males, however, and at a higher dose. The dose allowed in children ages 5-11 is at one-third the level used in older children and adults.
The strongest opposition for Covid shots in young children is in the South. It also includes people ages 18-24, those making under $30,000 annually and Republicans.
Omicron A Concern For Many
Meanwhile, the omicron variant is making its rounds. The World Health Organization deemed it a variant of concern just after Thanksgiving. It recently made its first appearance in the U.S. Vaccine stocks continue to yo-yo as news of omicron emerges.
The variant contains a number of mutations to its spike protein, which could help it escape Covid vaccines. The first vaccines introduce the body to a version of the protein which appeared roughly two years ago. This spike protein, however, might not look the same to the immune system.
Nearly three-quarters of those surveyed in IBD/TIPP poll — 72% — expressed concern omicron could worsen the pandemic in the U.S. That worry sent vaccine stocks flying last month. Two out of 10 people, though, are not concerned. The remainder weren’t sure or preferred not to say.
More than a quarter — 28% — haven’t received a Covid shot. But 30% said they have received the initial two-dose series from Pfizer or Moderna, plus a booster shot. Another 36% say they have received the initial series, but no booster.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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