Today, vaccine stocks are once again in focus for investors. However, this time, the news isn’t as good as investors might hope to see.
Indeed, vaccine stocks such as Moderna (NASDAQ:MRNA), Vaxart (NASDAQ:VXRT), CureVac (NASDAQ:CVAC) and Novavax (NASDAQ:NVAX) are all down big today. Each of these vaccine stocks are down double-digits currently. Losses range from 11% to 17% at the time of writing.
Now, the pandemic is still in full swing. And currently, only about 56% of the U.S. population is fully vaccinated against Covid-19. That’s a big chunk of the population left to get jabbed.
Additionally, recently announced booster shots have provided another shot in the arm for these vaccine stocks. While sentiment has continued to ride high, investors have benefited from piling into these aggressive growth stocks.
However, today, there’s some big headline news shaking things up in this sector. Let’s dive into why vaccine stocks are taking a dive today.
Vaccine Stocks Down on Positive Results for Oral Antiviral Covid-19 Medicine
Today, Merck (NYSE:MRK) announced the company, in combination with Ridgeback Biotherapeutics, has shown some promising results for its oral Covid-19 antiviral medicine.
These results came from the company’s Phase 3 study of its molnupiravir drug. The data showed that the risk of hospitalization or death was reduced by half for a significant portion of patients. And the promising results have led Merck to announce plans to request emergency use authorization (EUA) in the U.S. and submit marketing applications accordingly.
These are the first steps to bring an oral Covid-19 option to market, something regulators are likely to look favorably upon. As President Joe Biden’s administration looks to increase the relatively low vaccination rate in the U.S., such oral options could provide a solution for those concerned about the vaccines themselves.
Indeed, investors have reason to cheer this pill announcement, with Merck shares up approximately 9% at the time of writing. However, the fact that vaccine stocks have dipped so hard on this news is concerning. This suggests the valuations for many of these vaccine makers is being re-evaluated by the market.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
