Stocks That Soared on Covid Treatments Are Coming Back to Earth
- Vaccine rollout has undermined enthusiasm for drug development
- Some firms have abandoned efforts to create Covid treatments
This article is for subscribers only.
Covid-19 case numbers are soaring and health authorities are getting increasingly worried about coronavirus variants, yet investors are growing less optimistic about many of the companies that are trying to develop treatments for the infection.
Many of the stocks that skyrocketed in 2020 -- including Tiziana Life Sciences Plc and Sorrento Therapeutics Inc. -- have fallen from their highs amid mounting expectations that the pandemic can be suppressed through vaccination. At the same time, some biotechs such as France’s Abivax SA have abandoned trials for drugs to fight infection with the coronavirus.