Shares of Covid-19 vaccine makers collapsed Friday morning after pharmaceutical giant Merck announced it would seek regulatory approval for a first-of-its-kind treatment against the disease, sparking more than $30 billion in losses for a slew of stocks that headed up much of the market’s pandemic rally.
Shares of Moderna plunged as much as 15% Friday morning by 11 a.m. EDT, wiping out more than $22 billion in market value and making it the day’s worst-performing stock in the S&P, which nevertheless ticked up 1%.
Meanwhile, Pfizer partner BioNTech and Novavax (whose Covid-19 vaccine is still not approved in the United States) plummeted 13% and 18%, respectively, representing another $12 billion in combined market value lost.
Even shares of Pfizer and Johnson & Johnson, which are both much larger businesses less sensitive to Covid-19 developments, given their wide product offerings, dipped as much as 3% Friday morning.
The rout started in premarket trading immediately after Merck announced it would ask U.S. regulators for emergency authorization of its antiviral pill to treat Covid-19, Molnupiravir, setting the stage for what could become the market’s first oral antiviral treatment for the disease.
Merck also disclosed interim research has shown the pill halved the risks of hospitalization or death when given to patients at risk of severe illness, helping shares surge 9% after the announcement to add nearly $18 billion in market value.
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