Investing.com -- Shares of Moderna (NASDAQ: NASDAQ: MRNA ) climbed 5%, while Biontech and Pfizer (NYSE: PFE ) saw increases of 3% and 1% respectively, following reports of a new coronavirus with pandemic potential discovered in China. The uptick in these biotechnology stocks is attributed to concerns that this newly identified virus could lead to increased demand for vaccines.
The Daily Mail recently reported the discovery of a new coronavirus strain, HKU5-CoV-2, by researchers at the Wuhan Institute of Virology. This strain, found in bats, bears a close resemblance to SARS-CoV-2, the virus responsible for the Covid-19 pandemic, and is even more closely related to MERS, which has a higher mortality rate. The study, led by virologist Shi Zhengli and published in the journal Cell, indicated that HKU5-CoV-2 can infiltrate human cells similarly to SARS-CoV-2, posing a significant risk of spillover to humans.
The news has sparked fears of a potential new health crisis, akin to the early days of the Covid-19 outbreak. The possibility of another pandemic has investors closely watching vaccine makers like Moderna, Biontech, and Pfizer, anticipating that their expertise and resources may be called upon to respond to any emerging threat.
While the details surrounding the new virus are still unfolding, the market's reaction reflects concern over the potential need for rapid vaccine development and distribution, similar to the global response to Covid-19. The rise in these stocks underscores the biotech sector's critical role in addressing global health challenges.
As the situation develops, investors and health officials alike will be monitoring the implications of this discovery closely. For now, the market movement serves as a reminder of the volatile nature of biotech stocks in the face of public health concerns.
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