Prices of BioNTech and Moderna’s stocks literally crashed overnight, does this mean the pandemic is over?

Vaccine manufacturers are announcing new vaccines that will be adapted to coronavirus mutations, and even combined vaccines for COVID-19 and influenza.

However, stock exchanges do not seem to think that the prospects of companies like BioNTech and Moderna are high. Quite the opposite.

The owners of the shares of these companies in the last month are going through a nightmare of a sharp drop in the price of their securities. The fact that vaccines do not guarantee long-term immunity and do not protect against the transmission of infection, but are still good enough when it comes to preventing severe disease outcomes, does not seem to inspire investor confidence in the future income of vaccine manufacturers.

For example, the shares of German BioNTech today fell by 11.5 percent, while last year they were down 41.08 percent. In August 2021, the price of one share of BioNTech reached 464 dollars, and yesterday it traded for 151 dollars. At a time when BioNTech stock prices were high, the German biotechnology company founded in Mainz by Turkish scientists was glorified for using mRNA technology in the design of COVID-19 vaccines, as if they and their partner, Pfizer, were the saviors of the world. , which reflected the mood of investors. Stock markets no longer share that euphoria.

Slightly less painful period in the last three months was shared by Pfizer shareholders, who can still be said to have made good profits in terms of market capitalization during the pandemic. Pfizer shares are also on a downward trend, but still milder. It can be assumed that the decline is amortized by the fact that it is a much larger pharmaceutical company with a wide range of products, which in the meantime came up with information about a very effective covidine drug called paxlovid, so their future does not depend so much on mRNA vaccines. .

On the other hand, Moderna, a company that based most of its business boom and plans during the pandemic on the highly effective COVID-19 vaccine. The popularity of their vaccine, which for some time was thought to even prevent the spread of the infection, was so high that the price of their stock reached around $ 460. It was also August 2021, when BioNTech reached the peak of market capitalization. But today Moderna’s share price is $ 150 or 3 times less than it was at its peak. If the trend of reducing the share price of Moderna does not continue, the company could still be satisfied with what has been achieved, because at the end of 2020 they had a share price below $ 70, or twice less than today.

It is difficult to assess the extent to which the fall in stock prices of BioNTech and Moderna is part of a broader trend of stock market decline in the segment of high-tech and innovative companies in general. In that segment, valuations were extremely high during the pandemic, and now there is pumping.

One of the best examples of victims of the trend in which it was fashionable to bet on companies’ innovations is the Ark Innovation ETF fund, founded by aggressive investor Katie Wood. He became famous during the pandemic for investing in DNA technology, robotics, artificial intelligence, automation, but with the sharp drop in shares of Zoom and Tesla, as well as the collapse of Coinbeis global, Ark Innovation ETF values ​​fell – only from the beginning. this year they are 27 percent, and they are worth half less than a year ago, when they were at their peak. Katie Wood is now urging investors to look “out of stock market volatility” and understand that “innovation is for sale”.

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