Vaccine manufacturers’ stocks grow as China struggles with worst Covid outbreak since 2020

Shares of major vaccine manufacturers rose on Monday as China faces its worst outbreak of Covid after 2020, sparking fears the pandemic will drag on, which could boost demand for future vaccine orders.

ModernShares rose more than 7% on Monday afternoon, while BioNTech jumped by more than 12%. Pfizer increased by more than 4% and Johnson & Johnson more than 1%. Novavax became negative after rising by more than 1% at the start of the day.

Larger cities in China have set new restrictions on anti-outbreak for business activities powered by the omicron Covid version. Shenzhen, the main technology hub in southern China, has ordered companies to stop all non-essential business activities or keep employees working from home, while Changchun has imposed a prison in the northeast. Apple supplier Foxconn has stopped production in Shenzhen while Toyota and Volkswagen discontinued production in Changchun.

In Shanghai, China’s financial hub, schools have returned to online classes and officials have ordered residents not to leave the city unless absolutely necessary. China has a strict strategy without Covid, which uses strict measures to quickly stop the outbreaks.

Mainland China reported more than 1,400 new covid infections on Sunday, for a total of more than 8,500 cases transmitted at home, according to the China National Health Commission. maximum from March 2020. China has not reported any new deaths due to covid.

Jefferies analysts said in a Monday post that the outbreak and stalemate in China sparked fears among investors that the pandemic would last longer than expected.

“Vaccine manufacturers will continue to trade based on global fear of new waves,” Michael Yee, a stock analyst, wrote in Monday’s record.

While China is likely to continue to rely on its domestic Sinopharm vaccine, the outbreak will keep the world alert and likely drive demand for the Modern fringe vaccine, according to a Jefferies note. Moderna predicts sales of the vaccine for at least $ 19 billion by 2022, while Pfizer predicts $ 32 billion in revenue for its injections.

In the U.S., Covid infections continue to decline after an unusual increase in infections caused by the December and January versions of omicron. The U.S. reported an average of more than 35,000 new cases of Covid on Sunday, up 24% from last week, according to an analysis of CNBC data from Johns Hopkins University. New cases of Covid in the U.S. on January 15 reached an average of more than 800,000 cases per day. However, in the US, on average, more than 1,200 people still die every day, down 9% from last week, the data reported.

The Centers for Disease Control and Prevention said last week that 98% of people in the U.S. now live in areas where they no longer have to wear face masks indoors.