Delta variant deals pharma stocks a blowVaccine stocks spiral as their efficacy against the Delta variant is called into question. Moderna takes the worst of it, down just under 16% to close at $385.33.
As the Delta variant spreads like wildfire across the world, the millions of people that have already gotten their vaccine are beginning to wonder just how protected they are against the newer strain. A new study has indicated that in fact the vaccines might not be as effective as we have all been led to believe – the Pfizer jab appears to be only 42% effective, while Moderna provided a 76% protection rate in July, down from 86% earlier in the year. Pfizer investors don’t seem too bothered, with the stock declining just over 3% on Wednesday, leaving Moderna to take the brunt of the disappointment, seeing its shares plummet to their lowest price since the start of August.
If that's not a wakeup call, I don't know what is.
a senior Biden official said.
While the vaccines are managing to keep hospitalization rates under control, for now, it looks like anyone who got their jab earlier in the year might need a booster vaccine in the near future. The disappointment wasn't helped by the fact that the EU yesterday began an investigation into the possible side-effects of the vaccination after reports on potential damage to skin and kidneys began to roll in.
Despite the drop, Moderna stock is still up 260% since the start of the year, trading at its highest price ever and flirting with the $500 mark on Tuesday before the bad news hit.
Moderna to join S&P 500Vaccine hero Moderna opens Monday up 6% and finishes the day with a 9.5% bump, building on its share price jump of 10% on Friday on news that the biotech leader is set to get a S&P 500 listing. m
Shares of biotech company Moderna, which has been a leader in the development of a COVID vaccine – as well as leading the list of those that have profited – jumped for joy on Friday on news that it’ll be joining the S&P 500 Index. The index represents the 500 large companies listed on stock exchanges in the United States, and Moderna will be replacing Alexion Pharmaceuticals as of July 21 as the newest listing. The stock has gone from scrappy start-up to industry leader since COVID hit and its 94% effective vaccine swept the market while other vaccines were plagued with controversy – as of earlier last week, the FDA is considering issuing a safety warning against the Johnson & Johnson (JNJ) vaccine, which pushed MRNA prices up yet further. This year alone, prices have lifted over 180%.
Joining the index means that ETFs and mutual funds that track its performance will have to buy shares of Moderna to accurately keep track of the index, translating to $$$ for investors.