Positive clinical trial results for Merck & Co's experimental antiviral COVID-19 pill reverberated through the healthcare sector on Friday, sending the drugmaker's stock price soaring while denting high-flying shares of vaccine companies and makers of other coronavirus therapies.
and partner BioNTech SE were hit, with some analysts saying the promise of an oral drug that can be taken at home could change the public perception of risks associated with COVID-19.
"We see modest perceived headwind to vaccine stocks such as MRNA if the market thinks people will be less afraid of COVID-19 and less inclined to get vaccines, if there is a simple pill that can treat COVID-19," Jefferies analyst Michael Yee said in a client note. Moderna shares tumbled 13% in midday trading, while Pfizer, which is developing a COVID-19 pill of its own, fell 1.3%. U.S. shares of BioNTech dropped 11%.
For Moderna investors, the Merck news presented an opportunity to lock in gains after an already stunning run. Shares of Moderna, which were added to the S&P 500 in mid July, remain up some 220% in 2021 despite Friday's declines. BioNTech's shares were also still up about 200% for the year, even with Friday's fall.
The Merck news is a "great reason for folks to be taking profits off the table” in Moderna and BioNTech shares, said Sahak Manuelian, head of equity trading at Wedbush Securities. "These moves can get exacerbated to the downside given the momentum they have had to the upside."FILE PHOTO: Vials of coronavirus disease vaccines of Pfizer-BioNTech and Moderna are seen in the town of Ricany near Prague, Czech Republic, February 25, 2021.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
California To Require All Schoolchildren To Get COVID-19 ShotsCalifornia has announced the nation's first coronavirus vaccine mandate for schoolchildren.
Read more »
Australia to End Travel Ban in Pivot to Living With Covid-19Australia plans to end its travel ban for vaccinated citizens and permanent residents as the country pivots to living with Covid-19
Read more »
Covid-19 Deaths in U.S. Level Off as Delta Variant Surge EasesThe seven-day average for daily new Covid-19 deaths in the U.S. has hovered near 2,000 for more than a week, after a two-month climb during which more than 80,000 additional deaths were reported.
Read more »
Justice Brett Kavanaugh Tests Positive for Covid-19, Has No SymptomsJustice Brett Kavanaugh has tested positive for Covid-19, the Supreme Court said. He has no symptoms and has been fully vaccinated.
Read more »
New York Teachers Petition Supreme Court to Block Covid-19 Vaccine MandateFour New York City teachers have filed a petition asking the U.S. Supreme Court to block the city’s Covid-19 vaccine mandate, which requires school employees to be vaccinated to be able to work on Monday.
Read more »