3 Thriving Biotech Stocks Surviving Coronavirus-Infected Markets

As the wider stock market continues to plunge amidst the coronavirus outbreak, some biotech stocks have been spared and are surging.
Posted in: Markets
Published:
February 28, 2020 7:57 AM UTC
  • Some stocks are defying gravity amidst the coronavirus-related plunge.
  • Select biotech firms developing vaccines or treatments for the respiratory illness are among the winners.
  • Clinical trials are either underway or set to begin.

Since last week’s close, the S&P 500 index has dropped from 3338 points to around 3070 in Thursday’s premarket hours, a fall of over 8%.

The Dow Jones Industrial Average index has fallen by just about the same number of percentage points during the same period. This has come as the number of coronavirus COVID-19 cases across the globe escalates.

But amidst the stock market bloodbath, select biotechnology stocks have weathered the storm and appreciated by double-digit figures. Predictably, they are on the verge of either developing a cure for COVID-19 symptoms or a vaccine.

Below are three biotech stocks that have stood out:

Moderna Inc – surges nearly 60% after COVID-19 vaccine announcement

Cambridge, Massachusetts-based Moderna, Inc (NASDAQ:MRNA) announced on Tuesday that it had sent an experimental COVID-19 vaccine to U.S. government researchers for the Phase 1 study. The stock has since then soared by over 56% from $18.55 to above $29.

Moderna is up by nearly 60% after COVID-19 vaccine announcement | Source: TradingView

Trials of the vaccine tentatively labeled mRNA-1273 could start in April. It could take at least a year to get the vaccine approved if successful.

Moderna started developing the vaccine six weeks ago. This was right after coronavirus COVID-19 started taking on epidemic proportions in China.

Novavax – now hunts COVID-19 vaccine after MERS and SARS success

Maryland-based Novavax, Inc (NASDAQ:NVAX) announced on Wednesday that it will start COVID-19 vaccine trials on humans this spring. The biotech stock initially surged from $7.95 to $11.20, a gain of nearly 41%. It is now up 16% from Tuesday’s close.

Novavax is developing a coronavirus vaccine too | Source: TradingView

Novavax was previously involved in developing vaccines for the Severe Acute Respiratory Syndrome (SARS) and the Middle East Respiratory Syndrome (MERS).

Gilead Sciences – will remdesivir be the cure?

Gilead Sciences (NASDAQ:GILD) earlier this week received a strong endorsement from the World Health Organization. This was after an official with the international body said that the firm’s drug known as remdesivir could potentially cure coronavirus COVID-19.

On Wednesday, Gilead announced it had received “investigational new drug authorization” from the U.S. Food and Drug Administration to study remdesivir as a cure for COVID-19. Gilead has already initiated two Phase 3 studies.

The biotech stock is consequently up by slightly over 7% from last week’s close of $69.70.

WHO has suggested Gilead Sciences has the cure for COVID-19 | Source: TradingView

Samburaj Das edited this article for CCN.com. If you see a breach of our Code of Ethics or Rights and Duties of the Editor or find a factual, spelling, or grammar error, please contact us.

Last modified: June 12, 2020 10:31 PM UTC

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Mark Emem @wetalkmarkets

I cover business and the stock market for CCN. Currently based out of Nairobi, Kenya. Feel free to get in touch with me. Email: wetalkmarkets[at]yahoo.com