Why the shares of Moderna, BioNTech and Novavax have skyrocketed today

What happened

With the increase in COVID-19 cases, investors took refuge in vaccine stocks on Monday. At market close, the shares of Modern (NASDAQ: mRNA), BioNTech (NASDAQ: BNTX), and Novavax (NASDAQ: NVAX) increased by 17%, 15% and 12%, respectively.

So what

Moderna’s actions were boosted by news that its COVID vaccine had been provisionally registered by Australia’s Therapeutic Goods Administration. The drug can now be used to vaccinate people who are at least 18 years old in this country. Moderna has made deals to potentially deliver up to 25 million doses of its vaccine to the Australian government by 2022.

Shares of Moderna, BioNTech and Novavax rose sharply on Monday. Image source: Getty Images.

BioNTech, meanwhile, delivered better revenue and profits than expected in its second quarter report. German biotechnology sales and adjusted earnings were $ 6.2 billion and $ 12.67 per share, respectively. It was well above analysts’ estimates of $ 3.8 billion and $ 8.87 per share. BioNTech now expects to generate 15.9 billion euros ($ 18.7 billion) in revenue this year.

At the same time, Novavax seemed to benefit from a Barron report highlighting the institutional purchase of its shares. The New York State Mutual Fund (the third largest public pension plan in the United States) has increased its stake in Novavax and other vaccine stocks, according to its recent filings with the Securities and Exchange Commission.

Now what

If investors are more concerned that the increase in coronavirus cases will derail an economic recovery, they will likely become more defensive in their strategies. This could cause them to pile up in the stocks of major vaccine manufacturers.