The wave of COVID-19, which is affecting the entire global economy, has prompted governments and businesses to race for a vaccine. In this scenario, there are four-figure gains for biotech companies, which are fighting for the development of a vaccine against COVID-19 in the United States.
If you want to find more details about the performance of different biotech companies on the stock markets and to read the latest finance news in the world, download for free our companion app, Born2Invest.
Record-breaking: the vaccine race pushes Vaxart’s title to +2500%
The race to develop a vaccine for COVID-19 has increased the market capitalization of major global pharmaceutical groups by $50 billion in 2020, but the biggest impact has been felt by small startups such as Vaxart Inc.
The San Francisco-based company shows a stock market rise of close to 2425%, well above the performance of global market-leading pharmaceutical giants such as Pfizer (-13.80%). The great result of Vaxart Inc. is due to its competitive advantage over its competitors on how to administer the vaccine.
The vaccine developed by the San Francisco-based company will be administered orally, which could facilitate its marketing. This has been included in the U.S. government’s “Open Warp Speed”, which aims to produce 300 million doses by 2021. This announcement has raised the stock quoted in the Nasdaq.
The performance of Vaxart’s shares
The US company’s stock rose from $2.66 per share on June 23rd to $8.04 on Friday, June 26th, the day the federal government announced the selection of the Vaxart vaccine as a test.
The stock at the opening of Wall Street on Monday, June 22nd, after losing some ground compared to the previous Friday, June 19th, closed the last session on Wednesday, June 24th, steadily at $8 per share, an increase of more than 200% over last week’s Wednesday. This positive trend is due to the momentum that began after the announcement that pushed the stock up.
There are other biotech companies that do well on the stock market
However, there are many other companies involved in the development of a vaccine against COVID-19. There are 615 drugs in development and testing worldwide. Of these, 161 are vaccines, 271 are drugs for the treatment of the infection, and 183 are antivirals.
Within this set, there are 17 drugs in human trials to find a vaccine to stop the COVID-19 pandemic, which has infected more than 10.5 million people and caused more than 500,000 deaths to date.
The news of the first vaccine administered on a large scale comes from China. That is the result of a collaboration between the Army Research Unit of the People’s Republic of China and the Hong Kong based startup CanSino Biologics.
From an S&P market intelligence screening, there are 50 companies involved in the race for the vaccine. In addition to 14 large pharmaceutical multinationals such as Pfizer or Sanofi, there are also small companies that through government funding and agreements with large manufacturers are working to find an antidote to COVID-19.
In addition to Vaxart Inc. and CanSino Biologics, there is also Inovio Pharmaceutics, Novax Inc. and Arcturus Therapeutics Holdings Inc.
These businesses have shown an increase in market capitalization, such as Novax Inc, which increased from $90 million at the beginning of the year to $4.2 billion at the end of June, with the possibility of making its first profit next year; or Inovio Pharmaceutics, with a stock market gain of 716% since the beginning of the year, and CanSino Can and Arcturus Therapeutics Inc, which have recorded stock market performance since the beginning of 2020 of +279.73% and +352.5% respectively.
Opportunities in the Biotech sector
The rise in the stock market shares of companies involved in the development of a vaccine against COVID-19 opens up opportunities for market speculation.
Although only 10% of Biotech companies are profitable, the sector has recorded a gain of 471%, which is higher than both the S&P 500 and Nasdaq in the same period (200% and 378% respectively). An incoming speculative bubble? Only the future can reveal it.
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 Money.it, 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.
Delayed Brazilian entrepreneurship law: the harms to entrepreneurs
Regulations that were signed into Brazilian law on 28 February of this year have experienced a two month delay in...
A divided nation—a divided market: Credit Suisse weighs in on the presidential race
The US has never been more divided and this is being felt in the markets. The outcome of the presidential...
Battle of the markets: attacking the African hinterland
Containerized freight moving through the African continent’s ports is exploding. Even during any period of global deceleration, the continent’s container...
Crypto players want to be better regulated: are they crazy?
It is unusual to hear that a large number of industry stakeholders want stricter regulations, but this is exactly what...
Microfinance: a wise addition to the conscious investor’s portfolio?
In addition to microloans, microfinance institutions are increasingly offering savings accounts, insurance products and other related services, expanding the range...
Featured7 days ago
Green bonds, ESG and Covid bonds in fixed income funds
Featured6 days ago
IOTA secures its supremacy in the energy market with European partnership
Africa6 days ago
How the Ministry of Agriculture is trying to help farmers in Burkina Faso
Featured4 days ago
Are we moving towards 100% renewable energy in the coming years?