Moderna, BioNTech and Novavax fall after President Biden says the COVID-19 pandemic is ‘over’

Moderna, BioNTech and Novavax fall after President Biden says the COVID-19 pandemic is ‘over’

Shares of Moderna, BioNTech and Novavax plunged as much as 9% on Monday after President Joe Biden told 60 Minutes that the COVID-19 pandemic is over.

The latest data shows that the seven-day average of new COVID cases continues to fall to around 60,000, while daily deaths from the disease average around 500.

“The pandemic is over. We still have the COVID problem. We’re still working on it a little bit. But the pandemic is over. If you notice, nobody’s wearing masks. Everyone seems to be in pretty good shape.” and so I think it’s changing, and I think [the resumption of the Detroit auto show] he’s a perfect example of that,” Biden said.

The comments hit out at companies that derive most, if not all, of their revenue from the sale of vaccines designed to protect against the COVID-19 virus.

Despite Biden’s comments and the fact that COVID-19 has indeed dropped down the list of concerns for most people, there is likely still some demand for COVID vaccines as winter approaches and booster shots are recommended. Moderna also hinted that it could find new demand for its vaccines from China.

Moderna expects to generate approximately $21 billion in revenue in 2022, while BioNTech expects to post up to $17 billion for the year. Meanwhile, Novavax, which was late to the game with the approval of its COVID vaccine, expects to post $2 billion in revenue for the year.

But next year, those numbers will fall off a cliff, at least according to analysts’ estimates. Average 2023 revenue estimates for Moderna and BioNTech will drop to $10.7 billion and $9.8 billion, respectively, while Novavax should see relatively flat revenue at $2.3 billion.

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And investors are taking notice. Shares of Moderna and BioNTech have fallen 75% and 71% from their record highs, respectively, as investors grow impatient with both companies and their search for another mRNA-based drug that will be able to replace revenue from the COVID-19 vaccine.

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