Pharmaceutical companies are developing vaccines and drugs against the COVID-19

Pharmaceutical companies are developing vaccines and drugs against the COVID-19

25 September 2020Reading time: 4 minutes

More than 170 different teams are currently working on a vaccine against the coronavirus. Several vaccines are currently being tested, including Moderna’s vaccine, which is in an advanced test phase. On the other hand, pharmaceutical companies like Regeneron Pharmaceuticals are also working on a potential drug against the COVID-19.

Moderna is developing a vaccine

Moderna’s vaccine, on which the company has been working since the begin of the year, is currently in the phase 3 tests. This means that the vaccine is being tested on a wide group of persons to ensure that the vaccine has no undesired side effect. End of August, the company announced that about 13 000 people (about 40% of the 30 000 required for this testing phase) already volunteered for the trials. The company expects to complete enrollment in September, according to Reuters.
Moderna is one of the few companies to have reached this advanced testing phase. Currently, only eight other potential vaccines are in this advanced testing phase. This includes the vaccines developed by AstraZeneca, Pfizer and BioNTech.
Moderna is currently in talks with several countries to deliver its vaccine, if it passes the third testing phase successfully and receives the required authorizations. The company announced on August 11th 2020 that it signed an agreement to supply 100 million doses to the United States. Moderna also announced on August 24th 2020 and August 28th 2020 that it was in advanced talks to supply 80 million doses to the European Union and 40 million to Japan. 

Regeneron Pharmaceuticals is working on a drug against COVID-19

Pharmaceutical companies are not only trying to develop a vaccine against the COVID-19, some of them are currently working on a drug against the deadly disease. According to the BBC, some 150 drugs are currently being research in different countries. Some of these drugs are being tested on a large scale.
The NASDAQ listed US biotechnology company Regeneron Pharmaceuticals is currently running tests for its drug against the COVID-19. According to the company, the newly developed drug called REGN-COV2 could help to prevent the disease and cure it.  
Regeneron has already signed a USD 450 million contract with the US government to provide the United States with the treatment if successfully tested.

Moderna’s and Regeneron’s stocks overview

Both companies’ stock price increased significantly since February 2020 and the beginning of the worldwide coronavirus pandemic. Compared to last year (as of September 16th) Moderna’s stock price increased by 267% from about USD 18 to about USD 66 and Regeneron Pharmaceuticals’ stock price increased by 103% from about USD 285 to USD 579.
Nevertheless, this growth has not been continuous. Neither for Moderna nor for Regeneron. Indeed, compared to its highest price mid-July (USD 95.21 on July 7th 2020), Moderna’s stock lost around USD 30: some investors feared that the vaccine would be less profitable than initially expected, according to Reuters. Regeneron also saw its stock price decrease in the second half of July and end of August. The volatility of both stocks also significantly increased since the beginning of the year. For Moderna, the 60-days historical volatility went up from 52.12% on January 2nd 2020 to 83.57% on September 16th 2020, reaching 136.55% on May 18th 2020 according to Bloomberg. Regeneron’s 60-days historical volatility also increased over the same period: 24.93% on January 2nd and 36.34% on September 16th, with a maximum at 62.61% on May 15th.

For Moderna, the 52-weeks high of USD 95.21 was reached on July 7th 2020 and the 52-weeks low of USD 13.53 was reached on October 15th 2019. Regeneron Pharmaceuticals’ stock price reached its 52 week high of USD 664.64 on July 20th 2020 and its 52 weeks low of 271.37 USD on September 27th 2020.

The future price of Moderna’s and Regeneron Pharmaceuticals’ shares is subject to several political, industrial and sector specific as well as economic factors. Investors should consider these risks when making their investment decisions. Developments can be different at any time than investors anticipated on, which could result in capital losses.

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01/03/2021 02:47:52