These 3 small pharmaceutical stocks are surging after announcing work on a coronavirus vaccine

Miguel Candela/SOPA Images/LightRocket via Getty ImagesHealth care members make first aid to people as they cover their faces with sanitary masks after the first cases of coronavirus have been confirmed in Hong Kong in Hong Kong.

Amid a rout that’s sending global stocks and oil prices lower, three pharmaceutical companies are seeing outsized gains because of China’s coronavirus outbreak.

Shares of Inovio Pharmaceuticals, Moderna Inc., and Novavax Inc. all surged Monday as China’s coronavirus spread further. The companies continued rallies sparked on Thursday, when the Coalition for Epidemic Preparedness Innovations, a public-private nonprofit based in Norway, announced that it will provide as much as $US11 million in funding to the three companies to develop new vaccines against the Wuhan strain.

In addition to the three pharmaceutical companies, the University of Queensland in Australia is also working on a vaccine for the coronavirus and received funding from the CEPI.

So far the virus, which was first identified in Wuhan, China, has killed 81 people and infected more than 2,700 worldwide, prompting fear of a global outbreak. There are no current vaccines or treatments for the virus, called nCoV-2019, which is similar to the virus that caused severe acute respiratory syndrome, or SARS. That virus incited global panic amid a 2003 outbreak.

Some of the experimental vaccines the pharma companies are working on to target the Wuhan virus could be ready for human testing in a few months, The Wall Street Journal reported Thursday. Approval for more widespread use, however, will take much longer, according to the report.

Here’s how much each company gained Monday, and how much each stock has rallied since Thursday, ranked from lowest to highest gain.

1. Inovio Pharmaceuticals

REUTERS/Martin PollardA worker in protective suits checks the temperature of a passenger arriving at the Xianning North Station on the eve of the Chinese Lunar New Year celebrations, in Xianning, a city bordering Wuhan to the north, in Hubei province, China January 24, 2020.


Stock gains Monday: as much as 40%

Stock gains since Thursday, January 23: as much as 55%

2. Novavax Inc.

Kevin Frayer/Getty ImagesPassengers who just arrived on a train from Wuhan, China are screened for coronavirus in Beijing.


Stock gains Monday: as much as 19%

Stock gains since Thursday, January 23:as much as 22%

3. Moderna Inc.

ModernaThe biotech Moderna is developing experimental cancer vaccines.


Stock gains Monday: as much as 9%

Stock gains since Thursday, January 23:as much as 8%

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