The fight against Covid-19 triggers a speculative fever around biotech companies
Alliances are multiplying between laboratories to fight against COVID-19, following the example of the partnership announced on Wednesday, August 19th, between the pharmaceutical giant Roche and the American company Regeneron. On the stock market, the share prices of biotech companies are soaring. However, only a small part of the research in progress will be conclusive.
The Swiss pharmaceutical giant Roche announced on Wednesday, August 19th that it had signed a partnership with the American biotech company Regeneron to produce a treatment against COVID-19. The two companies will produce and market antibodies for the prevention and treatment of the disease. This partnership adds to the long list of alliances signed between laboratories since the beginning of the pandemic.
The agreement signed between Regeneron and Roche for this treatment (which is not a vaccine), called REGN-COV 2, would triple production capacity, the Swiss laboratory explained. This combination of two antibodies is currently in the final phase of clinical trials (i.e. already tested on humans). However, initial results are already proving effective in prevention and treatment in rhesus monkeys and hamsters, according to the laboratory.
If approvals are granted, Roche would distribute the treatment outside the US, with Regeneron focusing on the US market.
Investors flock to invest in biotech companies that entered the race to find a vaccine against COVID-19. Read more about the speculative fever that’s currently surrounding the biotech sector and find the latest business news with the Born2Invest mobile app.
Biotech companies are in a race against time
For all the laboratories, the objective is obviously to go as fast as possible, with the hope of winning the bid by being the first to propose a treatment or a vaccine. But it is also important to share the costs of research, which is always very expensive.
According to the World Health Organization (WHO), nearly 170 candidate vaccines are under development, but only about 20 are already in clinical trials. At the moment, none of them are ready to be marketed and most of them will probably never be marketed. On average, only 10% of the vaccines tested in Phase 1 clinical trials successfully reach Phase 3, the last phase before eventual licensing.
Biotech stocks are in great demand on the stock market
However, on the stock market, investors are not being very cautious and all the shares of biotech companies working on the subject are going up in flames. This is particularly the case for the American company Moderna, headed by Frenchman Stéphane Bancel, a former bioMérieux employee.
It is the most advanced biotech company on the subject, with a candidate vaccine in Phase 3. Moderna now weighs $30 billion (€25 billion) on Wall Street, heavier than Orange or Crédit Agricole on the Paris stock exchange, with a price that has risen 250% since the beginning of the year. That’s a lot for a company that in 2019 only made $60 million dollars (€50 million) in sales.
A speculative fever is surrounding the biotech sector
The case of the German pharmaceutical laboratory CureVac, which chose to go public in New York rather than Frankfurt, is indicative of the speculative fever surrounding the sector. The share was put on the market on Friday, August 14th at $16. It is already worth more than $60, climbing 250 percent on its first day of trading.
The American pharmaceutical laboratory Novavax, which has just announced that it has begun a new phase of clinical trials in South Africa for its Covid 19 vaccine candidate, is posting an even more incredible stock market performance. The stock has risen by 3,580 % since January. Inovio, another US biotech company, has risen 330%. As with the lottery, the question remains as to who will draw the winning ticket.
(Featured image by Caniceus via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in LACROIX, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Attracting Foreign Investment, an Administrative Odyssey for Fintech Companies in Spain
A well-defined regulatory context will provide investors with greater legal guarantees and will probably contribute to incentivizing investment in the...
Better Opens a Subsidiary in Spain and Projects 5 Million Revenues Before 2025
Better works with healthcare professionals to determine which type of medications are best for patients, after having analyzed and parameterized their...
Cannabis Industry Trends in 2023 – How Are Cannabis Consumers Evolving?
The European medical cannabis industry plays a significant role in the global market. 80% of transactions in this market involve...
If the SEC Is “Killing Crypto,” Why’s It Not Killing KoreChain?
With the SEC now aggressively cracking down on crypto, crypto pundits are accusing it of “killing crypto in America.” But...
Helaba Promotes Energy Transition via Crowdfunding
Helaba Landesbank Hessen-Thüringen ( website) together with the Deutsche Leasing Group (website) launched its own crowdfunding platform. The pilot phase...
Biotech2 weeks ago
Miwendo Opens Round of €4 Million after Capturing €1.6 Million from Health
Biotech1 day ago
The P4Q Health Subsidiary Projects 1 Million in Revenues in 2023
Crypto1 week ago
Bitcoin Surges 4% after US Debt Limit Suspension Deal
Featured2 weeks ago
Fintech Infrastructure Is Essential for Digital Economy, Experts Agree