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Vaccine maker stocks rise as China battles worst Covid outbreak since 2020

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Protective clothing-wearing health workers give nucleic acids tests to the men in a testing station to detect COVID-19. It was held in Beijing on March 14th, 2022.

Kevin Frayer. Getty Images| Getty Images

The shares of some major vaccine producers rose Monday, as China faces its worst Covid pandemic since 2020. It is fueling fears about the potential for a prolonged outbreak and could increase the demand for vaccines.

ModernaStocks rose by more than 7 percent Monday afternoon. BioNTechThe increase was more than 12 percent PfizerThe increase was greater than 4% Johnson & JohnsonIt is higher than 1% NovavaxAfter rising by more than 1% in the previous day, it had fallen to a negative level.

In China, several major cities have made new restrictions to business activities in an effort to combat the spread of the disease. Shenzhen in China is a key tech center and has instructed companies not to do any business or allow employees to work at home. Changchun, in northeast China has been placed under lockdown. AppleSource FoxconnShenzhen has been stopped from production, ToyotaVolkswagen and Changchun’s production have been halted by both Volkswagen and Changchun.

Shanghai is China’s financial capital. Officials have instructed residents not to move from the city except for emergency situations. China uses hard measures to swiftly eradicate epidemics and has strict zero-Covid policies.

According to China’s National Health Commission (China), Mainland China has reported over 1,400 Covid infection cases as of Sunday. This makes it a total number of more than 8,500 domestically-transmitted cases. the most since March of 2020.China has yet to report any Covid deaths.

Jefferies analyst wrote Monday that China lockdowns and outbreaks are fueling investor fear. They also warned investors that it may take longer for the pandemic to be over.

CNBC Health & Science

CNBC provides the latest coverage worldwide of the Covid pandemic.

In Monday’s note, Michael Yee, an equity analyst wrote that vaccine makers would continue trading on the global fear of new waves.

China is likely to continue using its own vaccine Sinopharm. However, this outbreak will put the rest of the world on high alert. It will also drive up demand for Moderna’s vaccine. According to the Jefferies’ Note. Moderna projects at least $19 Billion in vaccine sales by 2022. Pfizer expects $32 Billion in revenues for its shot shots.

The U.S. continues to see a decline in Covid infection after an unprecedented increase of cases caused by the omicron variation in January and December. A CNBC analysis of Johns Hopkins University data showed that the U.S. had reported more than 35,000 Covid cases per Sunday. That’s a 24% decline from the previous week. On Jan. 15, the average number of new Covid cases per day in the U.S. was more than 800,000. The data shows that more than 1,200 Covid cases are still being reported in America every day, a drop of 9% over the previous week.

Last week, the Centers for Disease Control and Prevention reported that 98% Americans live in places where facemasks are not required in public indoor areas.

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