Shares of Novavax Inc (NASDAQ:NVAX) and Moderna Inc (NASDAQ:MRNA) declined on Wednesday after both companies rose in the previous session following reports of a suspected pneumonic plague case in Russia.
Novavax shares fell 11% after gaining 20% on Tuesday, while Moderna declined 6% following a 7% increase in the prior session. The iShares Biotechnology ETF fell 3%, while the S&P 500 rose 1%.
The World Health Organization currently assesses the broader public health risk as low. The suspected plague case remains unconfirmed, while contacts have tested negative, according to Citi.
BioNTech Shares Show Limited Movement
BioNTech SE (NASDAQ:BNTX) shares rose 1% on Tuesday before trading broadly flat on Wednesday.
Citi said investors increasingly value BioNTech based on its oncology pipeline rather than its COVID-19 products, which the bank cited as a factor differentiating its share-price response from those of Novavax and Moderna.
Citi said the recent market moves illustrated the sensitivity of vaccine-focused companies to health-related headlines.
The investment bank said it favours companies developing treatments in immunology and inflammation, oncology, cardiometabolic conditions and rare diseases. Citi also said vaccine companies remain exposed to changes in policy-related narratives and expects future developments to continue affecting the sector.
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