by Julia Gro, Euro on Sunday
M Some analysts want to see a bottoming out in the biotechnology sector. However, it’s a bit like Omikron in Germany: It remains to be seen whether we’ve already reached the peak of the wave or the bottom for the biotechs.
The statement by the US immunologist Anthony Fauci, according to which most people may only need COVID booster vaccinations every four to five years, is not exactly optimistic. Sanofi had already made a similar statement. If this were to happen, manufacturers’ profit estimates would have to be revised downwards massively.
Dynavax shares provided a ray of hope. The Chinese Clover Pharmaceuticals, which uses the Dynavax booster, has announced broad-based booster studies. Clover is targeting a regulatory filing in China by mid-year and in Europe and the World Health Organization (WHO) in the third quarter.
Meanwhile, BioNTech and Pfizer are delaying US approval of the vaccine for children under the age of five until at least April. As predicted last week, GlaxoSmithKline has entered the race for an mRNA flu vaccine, along with CureVac. The CureVac share was not able to benefit from this. No wonder, Sanofi and Moderna are already further along, and market participants also have strong doubts as to whether CureVac’s unmodified mRNA is suitable for this. Because in the case of influenza, it competes with vaccines that have hardly any side effects – something that CureVac’s vaccines were not previously known for.
INVESTOR INFO
Moderna will present figures and the forecast for 2022 next Thursday. It will be very difficult for the company to surprise positively. First, the latest data does not suggest that an omicron vaccine has any benefit, and second annual boosters may not be needed. Moderna’s flu data was also mixed. At most, indications of what the company intends to do with its cash could give the stock a boost. However, the low price level offers entry opportunities for long-term oriented investors: Moderna’s pipeline is extensive and promising.
Investments in individual biotech stocks require a considerable willingness to take risks and ideally also background knowledge on the part of the investor. ETFs at least offer the possibility of spreading the risk more widely. The Nasdaq Biotechnology Index is one of the most important industry barometers. The ETF tracks the performance of almost 400 biotech and pharmaceutical companies listed on the US Technology Exchange. Of the well-known vaccine stocks, Moderna is represented with just over four percent. Amgen is the index heavyweight at 10 percent, ahead of Gilead and Regeneron. A bottom seems to be forming at the moment. Long term potential.
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