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  • Moderna crash wipes out $22B in value after Merck’s COVID pill triggers vaccine stock plunge

Moderna crash wipes out $22B in value after Merck’s COVID pill triggers vaccine stock plunge

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Shares of Covid-19 vaccine makers collapsed Friday morning after pharmaceutical giant Merck announced it would seek regulatory approval for a first-of-its-kind treatment against the disease, sparking more than $30 billion in losses for a slew of stocks that headed up much of the market’s pandemic rally.

Shares of Moderna plunged as much as 15% Friday morning by 11 a.m. EDT, wiping out more than $22 billion in market value and making it the day’s worst-performing stock in the S&P, which instead ticked up 0.1%.

Meanwhile, Pfizer partner BioNTech and Novavax (whose Covid-19 vaccine is still not approved in the United States) plummeted 13% and 18%, respectively, representing another $12 billion in combined market value lost.

Even shares of Pfizer and Johnson & Johnson, which are both much larger businesses less sensitive to Covid-19 developments, given their wide product offerings, dipped as much as 3% Friday morning.

The rout started in premarket trading immediately after Merck announced it would ask U.S. regulators for emergency authorization of its antiviral pill to treat Covid-19, Molnupiravir, setting the stage for what could become the market’s first oral antiviral treatment for the disease.

Merck also disclosed interim research has shown the pill halved the risks of hospitalization or death when given to patients at risk of severe illness, helping shares surge 9% after the announcement to add nearly $18 billion in market value.

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Thus far, Covid-19 vaccines have proven to be highly effective in preventing serious illness and the market’s best defense against the virus—making them a massive boon to a slew of businesses heading up their development. Moderna forecasts about $19 billion in sales from Covid-19 vaccines this year, while Pfizer expects the shots will help pull in about $33.5 billion.

However, that still hasn’t stopped critics from lashing out against the long-term viability of such gains. Last month, Bank of America sparked one of the biggest selloffs in Moderna’s history after saying future sales expectations don’t justify the company’s current valuation, wiping out about $20 billion in market value. In its note, Bank of America warned more intense competition as Covid-19 research advances marked one of the biggest risks to Moderna stock prices.

SURPRISING FACT

Despite the Friday plunge, Moderna is still the S&P’s best-performing stock this year, having skyrocketed nearly 270% as the company’s Covid-19 vaccines became widely available across the world. Still, shares are down about 30% from a peak set just last month.

WHAT TO WATCH FOR

There are several other antiviral treatments in development for use against Covid-19. Pfizer is testing one, as are Swiss pharma giant Roche and Boston-based Atea Pharmaceuticals.

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REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – INDIVIDUAL SELECTION)

 

OECS MSME Guarantee Facility Project

Loan No.: IDA-62670, IDA-62660, IDA-62640, IBRD-88830, IDA-62650

Assignment Title: Senior Operating Officer (SOO)

Reference No. KN-ECPCGC-207852-CS-INDV

 

The Governments of Antigua and Barbuda, Commonwealth of Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines have received financing in the amount of US$10 million equivalent from the World Bank towards the cost of establishing a partial credit guarantee scheme, and they intend to apply part of the proceeds to payments for goods, and consulting services to be procured under this project. 

The consultant will serve as the “Senior Operating Officer (SOO)” for the ECPCGC and should possess extensive knowledge of MSME lending with some direct experience lending to Micro, small and medium-sized businesses, knowledge of the internal control processes necessary for a lending operation and the ability to design and implement risk mitigation procedures. The ideal candidate should possess an Undergraduate Degree from a reputable college or university, preferably in Business, Accounting, Banking or related field, with a minimum of 5 years’ experience in lending, inclusive of MSME lending. The initial employment period will be for two years on a contractual basis. Renewal of the contract will be subject to a performance evaluation at the end of the contractual period. The assignment is expected to begin on September 30th, 2021.  The consultant will report directly to the Chief Executive Officer of the ECPCGC.

The detailed Terms of Reference (TOR) for the assignment can be viewed by following the attached link below. 

 

https://bit.ly/3iVannm

 

The Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC) now invites eligible “Consultants” to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have:

  • An Undergraduate Degree from a reputable college or university, preferably in Business, Finance, Banking or related field; and
  • Minimum of 5 years’ experience in MSME lending. Applicants should also have:
  • The ability to design and implement risk management procedures 
  • Extensive knowledge of MSME lending with some direct experience lending to small and medium-sized businesses
  • Extensive knowledge of MSME banking operations
  • Knowledge of the internal controls necessary for a lending operation and the ability to design and implement risk management procedures
  • Experience developing and presenting information in public, including responding to questions in real-time
  • Experience lending to MSMEs located in the ECCU
  • Knowledge of marketing and communicating with the MSME sector
  • Ability to draft procedures to be used in a lending operation
  • Familiarity with the mechanics of a loan guarantee program
  • Exceptional written, oral, interpersonal, and presentation skills, and
  • Proficiency in the use of Microsoft Office suite.

The attention of interested Individual Consultants is drawn to Section III, Paragraphs 3.14, 3.16, and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers July 2016, [revised November 2017] (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest. A Consultant will be selected in accordance with the Approved Selection Method for Individual Consultants set out in the clause 7.34 of the World Bank Procurement Regulations for IPF Borrowers. 

 

Further information can be obtained at the address below during office hours 0800 to 1700 hours:

Eastern Caribbean Partial Credit Guarantee Corporation

Brid Rock, Basseterre,

St. Kitts.

Expressions of interest must be delivered in a written form by e-mail by August 11th, 2021, to [email protected]

 

For further information, please contact:

Carmen Gomez-Trigg                                                            Bernard Thomas

Chief Executive Officer                                                          Chief Financial Officer

Tel: 868-620-8144                                                                  Tel: 869-765-2385

Email: [email protected]                                          [email protected]