Why it fell more than 5%
- The Regeneron Pharmaceuticals Inc (NASDAQ: REGN) share price fell more than 5% in the previous trading session. That’s why it happened.
The Regeneron Pharmaceuticals Inc (NASDAQ: REGN) share price fell more than 5% in the previous trading session. Investors are reacting negatively to Merck’s announcement of a COVID-19 antiviral pill, which reduces the risk of hospitalization or death by about 50%. While this is great news for society as a whole, it worries investors that demand for COVID-19 vaccines declines in the coming months. Some of the vaccine makers that have seen a significant drop in stock prices include Moderna, Novavax, BioNTech, and Vir Biotechnology.
“We view this news as consistent with our expectation that the absolute size of the end-market COVID vaccines will shrink faster than consensus predicts, as weaker end-user demand responds to the flow of vaccine manufacturing volume. entering the market in 2021 and beyond. SVB Leerink analyst Mani Foroohar said in a research note via Barron’s.
But Jefferies analyst Michael Yee doesn’t expect the news from Merck to have a material impact on the bigger picture in terms of vaccine demand. Yee stressed that the vaccine package is intended to prevent the disease to begin with.
Disclaimer: This content is intended for informational purposes. Before you make an investment, you need to do your own analysis.