On Friday, December 12th, Eastern Time, media reports emerged that the Trump administration linked the causes of several children's deaths to the administration of COVID-19 vaccines and is considering restricting the scope of vaccination.
This news has drawn investor attention, with market concerns quickly spreading throughout the biotechnology sector, as investors closely monitor the potential impact of policy changes on the vaccine industry. Biotech stocks listed in the U.S. experienced a sharp decline.
At the beginning of the U.S. stock market's midday session, the Nasdaq Biotechnology Index saw its intraday decline widen to 1.5%. Among the index's constituents, the German company BioNTech, which is developing a COVID-19 vaccine, led the decline, falling over 10% at one point. Its competitor in COVID-19 vaccine development, Moderna, dropped over 7%.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/d70041fe-cb8f-476c-8390-8f90b4aa4ba1.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/d70041fe-cb8f-476c-8390-8f90b4aa4ba1.jpeg"/>
Other constituents included Trevi Therapeutics, which fell nearly 9%, Sutro Biopharma down 8.5%, and Precigen, Arcturus Therapeutics Holdings Inc., Tarsus, Travere Therapeutics, Personalis, Arbutus Biopharma, and KalVista Pharmaceuticals, which dropped between 7.49% and 5.27%.
Another biotech company developing a COVID-19 vaccine, Novavax, saw its intraday decline exceed 4%. BioNTech's COVID-19 vaccine development partner, Pfizer, experienced a relatively smaller drop, falling over 3% at midday.
Commentary pointed out that the COVID-19 vaccine is almost the only source of revenue for Moderna, while Pfizer has a larger and more diversified product portfolio.
<h2>Questionable Data Sources Raise Market Concerns About Policy Impact</h2>
Media reports on Friday indicated that health officials from the Trump administration would report relevant findings to advisors at the Centers for Disease Control and Prevention (CDC) next week.
The reports noted that the information regarding the 25 cases of child deaths came from the U.S. federal government's Vaccine Adverse Event Reporting System (VAERS). The officials' findings linking COVID-19 vaccines to child deaths appear to be based on information submitted to that system, which collects reports that have not been verified.
VAERS collects a large amount of unfiltered data aimed at detecting signs of adverse effects early. Anyone can submit a report, and the system does not verify details or prevent duplicate submissions. Some media have reported that scientific researchers indicate this pattern increases the difficulty of drawing definitive conclusions.
The U.S. Department of Health and Human Services (HHS) has not yet responded to requests for comments from other media. Market participants are closely monitoring further developments from the Trump administration regarding vaccine policy.
The significant decline in the biotechnology sector reflects market concerns about policy uncertainty and a reassessment of the future prospects of the vaccine industry.
The Trump administration had already begun to restrict the scope of vaccination. Last month, the FDA limited the approval of COVID-19 vaccines to high-risk populations, whereas previously, everyone over six months old was eligible for vaccination
Investors are concerned that if the Trump administration further tightens vaccination policies, it could have a significant impact on the business of vaccine manufacturers, especially for companies that heavily rely on COVID-19 vaccine revenue

MRNA

BNTX

BioNTech, which is developing a COVID-19 vaccine, fell over 10% during trading, Moderna dropped over 7%, and Novavax declined over 4%. Investors are concerned that if the Trump administration further tightens vaccination policies, it could significantly impact the business of vaccine manufacturers, especially companies like Moderna that heavily rely on COVID-19 vaccine revenue. Update

- On September 12, reports emerged linking multiple child deaths to COVID-19 vaccinations under the Trump administration, raising concerns about potential restrictions on vaccine distribution.  
- This news triggered a significant sell-off in the biotech sector, with the Nasdaq Biotechnology Index dropping 1.5%, and companies like BioNTech and Moderna experiencing declines of over 10% and 7%, respectively.  
- The market is apprehensive about the implications of these policy changes, especially as the FDA has already limited vaccine approvals to high-risk groups, potentially impacting companies reliant on COVID-19 vaccine revenues.

Wallstreetcn

Moderna

BioNTech SE

Reports indicate that the Trump administration is shifting blame for child deaths to COVID-19 vaccination, leading to a sharp decline in biotechnology stocks