3 Companies Racing to Find a Cure

After an eye-watering 30% selloff in the past month, the stock market is almost back to 2016’s levels as volatility spikes through heights last seen during the 2008 crash. As the coronavirus pandemic takes hold of the western world and puts countries into lockdown, scientists around the globe are racing to find a cure.

Several companies, from micro caps to mega-caps, have said they’re hot on the trail of a vaccine and investors haven’t been slow about figuring out who they are.

Regeneron Pharmaceuticals

Regeneron Pharmaceuticals (NASDAQ: REGN) are probably the biggest name on this list and with a $55 billion market cap, they probably have the most resources to throw at this project. On Tuesday of this week, they announced a breakthrough in their hunt for a treatment. They’ve identified hundreds of virus-neutralizing antibodies, have plans to initiate large-scale manufacturing by mid-April with an antibody cocktail therapy and they could potentially be running human clinical studies by early summer.

This work is in addition to the company’s separate ongoing clinical program around how the Kevzara antibody can help treat lung inflammation in severe COVID-19 patients and hopefully keep them off the much-needed ventilators.

The news sent the stock up over 16% on Tuesday, to its highest levels since 2017.

BioNTech

Weighing in with a $15 billion market cap, we have BioNTech (NASDAQ: BNTX), a German company which trades on the NASDAQ via an ADR. Yesterday, news broke that Pfizer (NYSE: PFE) was working closely with them on a COVID-19 vaccine. The two companies have worked together in the past on treatment for general influenza.

It’s an interesting setup; on the one hand you have a pharma heavyweight and on the other a relatively young gun that specializes in mRNA-based immune therapies. While it will take a year to 18 months for anything to be available to the masses, the partners are hoping that their RNA based vaccine will be effective in preventing people from contracting coronavirus. They’re hoping for clinical tests to have started by April.

While the news saw Pfizer catch a modest bid, BioNTech’s stock jumped 145% from Friday’s close to all-time highs as investors raced to get some skin in the game.

Moderna

Moderna (NASDAQ: MRNA) is a Cambridge, Massachusetts biotech that’s also in the race to produce a vaccine. Their shares jumped 30% on Monday after the company announced that they’d dosed the first patient in their vaccine’s study.

Their treatment is based around using messenger RNA to protect against SARS-CoV-2, which is the name of the virus that causes Covid-19. 45 healthy adults will take part in the Phase 1 study and researchers will be assessing the overall safety of the vaccine along with its ability to provoke an immune response. According to Moderna’s Chief Medical Officer, the company is already planning for the Phase 2 trial.

Shares of the company are now up close to 150% since last August and it looks like they’ll be attracting a bid for another while yet.

It may be a while yet before a definite cure or treatment is announced and even longer until it’s available to the general public, but Wall Street will be watching closely to see which companies are pulling ahead in the race to be the first. Investors should be mindful of the inherent volatility that comes with trading pharmaceutical and biotech stocks which will likely be increased as fresh news updates hit the wires in the coming weeks and months