In February, there was global fear that the coronavirus outbreak has affected the global economy as stock indexes tanked and corporate profit margins were threatened. Thus, with the continued spread of the virus, investors become more careful on where to put their money.
However, with the major stock indexes have plummeted and registered double digit loss, certain biotech stocks were sailing in a different course and registered an upward trend amid the continued spread of the virus in the past few weeks.
The companies whose stocks were increasing despite the troubled times are those companies that have been trying to develop a cure, treatment, and vaccines for COVID-19. These companies have already gained impressive numbers and these numbers are expected to continue to shoot up if the clinical tests for these treatments are proven successful.
Companies who have shown an impressive growth on stocks include, Moderna. Inc (MRNA), Inovio Pharmaceuticals (INO), and Co-Diagnostics Inc. (CODX).
Moderna, is a clinical stage biotechnology company that has manufactured a new type of vaccine for coronavirus treatment. Instead of using DNA-based treatments, Moderna's focus id geared toward developing mRNA treatments which they believe would help in treating the virus better. Studies show that mRNA is easier to be accessed since it is found across the cell while DNA-based treatments require access to the nucleus of the cell.
Moderna has done impressive work on vaccine development that it only took them less than two months to develop the vaccine after getting access to the virus. Thus, their stocks have and current-year earnings rose up to 6.2%, in the past 60 days.
Inovio Pharmaceuticals made way to the headlines in February after saying that they were able to produce a vaccine for coronavirus only after three hours after having access to the genetic sequence of the virus. The company announced that it had successfully developed a vaccine for the diseases and called it INO-4800. Inovio announced that they are expecting to start human trials of the vaccine this coming summer, resulting in the sudden increase of their stocks as it jumped to almost 30%.
Meanwhile, Co-Diagnostics Inc., a molecular diagnostics company introduced an easier to use coronavirus test kit. The European Union has even given them a CE mark approval to make the test kit available commercially to the public. With the COVID-19 outbreak still spreading, the need for the test increases also increasing the companies revenue. In the past 60 days, the company's current-year earnings have grown up to 66.7%.
COVID-19 or the disease caused by the novel coronavirus which first emerged in Wuhan City, Hubei Province, China continues to bring fear to everyone worldwide. Even with biotech firms and pharmaceuticals earning more, it cannot be denied that the virus has taken a toll on the economy as reflected by major stock indexes.
As of the present, the death toll of the coronavirus continues to rise as 3,100 death have been reported worldwide and with cases already reaching more than 90,000 across 70 countries and territories.