The coronavirus pandemic has had a profoundly negative effect on the stock market, and over the past few weeks, hundreds of stocks have recorded alarming declines.
What to Expect Now?
However, a handful of companies working on products meant to tackle the coronavirus, have seen their stocks record gains. One such stock is that of Inovio Pharmaceuticals Inc (NASDAQ:INO), which gained as much as 18% on Wednesday after it got positive coverage in the Mad Money show. Inovio is in the process of developing a coronavirus vaccine, and that has been the main reason behind the optimism around its stock in recent weeks.
That being said, it should be noted that the company is going to release data from its study later on in the summer, and hence, it seems that the Inovio stock soared primarily because of the coverage on Mad Money. In this regard, it is also necessary to point out that other companies are also working on coronavirus vaccines, and companies like Moderna are already ahead of Inovio in this regard. As a matter of fact, Inovio has been able to produce the vaccine ahead of storied pharmaceutical behemoths like Johnson & Johnson. Moderna has done the same, and on Wednesday, its stock recorded gains of 4%.
Inovio Pharmaceuticals is valued at $1.7 billion at this point, and if the company can manage to show progress in its vaccine development, then it could prove to be a stock worth considering. While a new vaccine can result in a significant rally in the stock, it is also necessary to keep in mind that there are certain associated risks that cannot be ignored.
There is currently no guarantee of whether the company is going to be able to come up with the product, and even if Inovio is successful, it is difficult to estimate the size of the coronavirus vaccine market. Last but not least, there is the small matter of competition from other companies as well.