53.70 +1.52 (0.03%)
After hours: 7:59PM EDT
|Bid||53.62 x 900|
|Ask||53.74 x 900|
|Day's range||46.13 - 53.34|
|52-week range||11.54 - 87.00|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Earnings date||05 Aug 2020 - 10 Aug 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||46.90|
Shares of Arcturus Therapeutics (NASDAQ: ARCT) were plunging 32.3% as of 11:43 a.m. EDT on Wednesday. Reports surfaced yesterday that one of the participants in Moderna's phase 1 study of its COVID-19 vaccine candidate experienced a severe reaction. STAT News' Matthew Herper reported on Tuesday that Ian Haydon developed a high fever after receiving a second dose of Moderna's experimental COVID-19 vaccine.
The COVID-19 pandemic has kept biotech players all over the world on their toes for a vaccine. This new opportunity has made the sector the most attractive one to investors.
In the last few weeks, bio-tech companies of all sizes have made impressive strides toward a vaccine. Many dozens of approaches are being taken, most will fail. With a future potential coronavirus inoculation carrying such an overwhelmingly positive public utility, which company will win? Choosing from the companies racing to the finish line is quite difficult, and also risky.
(Bloomberg) -- The search for a Covid-19 cure and an end to global shutdowns has created a new type of investor in health-care stocks: the biotech tourist.They’re generalists who are “throwing money at headlines” about any Covid-19-tied companies that are generating “pockets of froth,” according to Brad Loncar, chief executive officer of Loncar Investments. Goldman Sachs analyst Asad Haider also pointed out concerns arising from mom and pop investors jumping into and then quickly exiting vaccine and drug developers on any sign of progress.The ups and downs of Gilead Sciences Inc. shares may provide some pause for speculative investors. The biotech behemoth added roughly $20 billion in market value from the end of January to the end of April over its Covid-19 medicine before peeling back from a more-than two-year high after its therapy, remdesivir, received an emergency-use authorization from U.S. regulators.Biotechs like Sorrento Therapeutics Inc. and Moderna Inc. may be at the beginning of that boom and bust cycle and eventually follow Gilead even lower, Loncar said in a phone interview.“Virus stocks are trading at unrealistic expectations with no fundamentals driving valuation,” he said. Since mid-May, Sorrento has doubled its market capitalization to $1.1 billion after its chief executive officer touted results from an experimental antibody not yet tested in humans. Those gains were driven on “all hype,” and there may be about 20 companies potentially ahead of Sorrento in antibody development, Loncar said.Haider at Goldman also highlighted the quick pop and fades in biotech. The Covid trade “has exacerbated concern about ‘non-sticky’ retail-driven setups trafficking in this theme,” while also whetting the appetite of hedge funds to short positive news on single stocks, he wrote in a note dated Friday.Meanwhile mutual funds have been increasing their health-care exposure especially in Gilead, Eli Lilly and Co., Regeneron Pharmaceuticals Inc. and Vertex Pharmaceuticals Inc., Haider said after analyzing quarterly filings. All of the drugmakers except Vertex are testing some sort of medicine for Covid-19.‘Short-Term Frenzy’“Some of these companies and the market cap additions relative to the quality and quantity of data they’ve released just seems bizarre,” John Porter, a fund manager at Mellon Investments Corp., said in an interview. “You’d be surprised to see just how much retail interest there is in these names. Retail is still a pretty small part of the market in the scheme of things.”Porter called it a “short-term frenzy” in biotech and said he was sensitive to companies latching onto the enthusiasm for Covid-19 when it wasn’t part of their strategy three months ago. “We’re not looking to buy companies that are looking to put out press releases to get some short-term pops in their stocks.”Experienced investors don’t understand the valuation but they’re learning some Covid-19 stocks are almost “unshortable,” Loncar said. “Stock prices can do anything when valuations are thrown out the window.”Indeed short interest in the sector is about $49 billion with short-seller losses totaling $4.3 billion this year through Friday, according to Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.The top two most unprofitable short plays so far this year: Moderna and Regeneron, according to S3’s analysis. Loncar said that other experienced biotech investors he has spoken to have backed off shorting and are staying away altogether.There are already cracks in Moderna’s foundation. The vaccine developer dropped as much as 12% on Tuesday after StatNews interviewed one of the patients who experienced severe side effects in a trial of the experimental inoculation.Other vaccine stocks riding high include Novavax Inc. which has rallied almost 1,200% this year and Inovio Pharmaceuticals Inc., whose stock price has climbed more than four-fold.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Novavax announced it would begin human trials for its coronavirus vaccine, while COVID-19 engulfs Brazil.
Biotech firm Novavax has entered its coronavirus vaccine in a Phase 1 clinical trial in Australia — the first in the Southern Hemisphere.
Tuesday morning brought renewed enthusiasm to Wall Street, as investors grow increasingly optimistic that economic reopenings taking place across the U.S. will have a positive result without causing a new uptick in COVID-19 cases. Market participants focused on the possibility that a coronavirus vaccine could be out sooner than expected. The S&P 500 (SNPINDEX: ^GSPC) rose 58 points to 3,014, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 122 points to 9,447.
As several pharma/biotech companies speed up efforts to make a vaccine for COVID-19, Novavax (NVAX) begins human testing of its candidate, NVX-CoV2373.
Buying Moderna (NASDAQ: MRNA) at its initial public offering (IPO) is a great example. While the overall stock market is still down year to date even after a solid rebound, shares of Moderna have skyrocketed close to 250% higher this so far year. Investors have flocked to the biotech stock because of the company's promising COVID-19 vaccine candidate.
Vaccines are perceived as key to ending the restraints on work and life that have decimated the global economy, and returning to some sense of normalcy.
The coronavirus pandemic accelerated a wellness renaissance among consumers as shelter in place orders took effect, based on some of the sales trends seen by companies including Ro.