- The stock price of Regeneron Pharmaceuticals Inc (NASDAQ: REGN) fell by over 5% in the previous trading session. This is why it happened.
The stock price of Regeneron Pharmaceuticals Inc (NASDAQ: REGN) fell by over 5% in the previous trading session. Investors are responding negatively to Merck announcing a COVID-19 antiviral pill, which reduces the risk of hospitalization or death by around 50%. While this is great news for society as a whole, it has concerned investors that the demand for COVID-19 vaccines will decline in the coming months. Some of the vaccine makers that saw a significant stock price drop include Moderna, Novavax, BioNTech, and Vir Biotechnology.
“We see this news as in line with our expectation that the absolute size of the COVID vaccine end-market will decline more quickly than consensus expects, as weakening end-user demand meets the flood of vaccine manufacturing volume coming to market in 2021 and beyond,” said SVB Leerink analyst Mani Foroohar in a research note via Barron’s.
But Jefferies analyst Michael Yee does not expect that Merck’s news will materially impact the bigger picture in terms of vaccine demand. Yee pointed out that the overall vaccines are for preventing getting sick to begin with.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.