Moderna, BioNTech lose nearly $60 billion in value in two-day drop

Moderna Inc. and BioNTech SE, the world’s leading Covid-19 vaccine makers, tumbled for the second day in a row, losing roughly $60 billion in combined market value as investors balked at the companies’ lofty valuations.

The declines deepened Wednesday with Moderna closing 16% lower and BioNTech dropping 14% as trading volume picked up. The stocks had soared more than 360% each this year through Monday, when both set record closing highs.

Wall Street has been divided on the stocks’ soaring prices, with more analysts grading the stocks a hold than recommending that investors buy. Bank of America Corp. analyst Geoff Meacham summed up the bears’ view on Cambridge, Massachusetts-based Moderna on Monday when he wrote the biotech’s valuation went “from unreasonable to ridiculous” as the stock approached a $200 billion market capitalization.

They aren’t the only vaccine stocks dropping. Pfizer Inc., the partner of Mainz, Germany-based BioNTech, slid 3.9% Wednesday, falling from an all-time high.

On Wednesday, Europe’s drug regulator revealed that it is investigating a possible link between mRNA vaccines and new conditions reported by a few recipients of the shots, news website Fierce Pharma reported.
At 9.45pm on Thursday, Moderna Inc stock had surged 3.3 per cent, while BioNTech was 5 per cent higher. Bloomberg