New side effects from vaccine? Modena shares fell 19 percent on news that the European Drug Agency will investigate three new side effects from Pfizer and Its vaccine.
Shares in biotech companies Moderna and BioNTech fell sharply on Wednesday after a report that the European Union’s drug regulator is investigating possible new side effects with their respective COVID-19 vaccines. The European Medicines Agency (EMA) said on Wednesday that it had begun evaluating reports of skin and kidney diseases following vaccination with vaccines from Pfizer and Moderna.
U.s.-listed shares of Moderna and Germany-based BioNTech were both down as much as 19% at one point. Moderna’s fall pushed the stock further away from the record high it hit on Monday. Pfizer shares fell 4% in intraday trading.
The European Medicines Agency said a “small number of cases” of potential side effects had been reported, but did not specify how many. The agency’s Pharmacovigilance Risk Assessment Committee is trying to identify erythema multiformis (an allergic reaction characterized by round skin lesions), glomerulonephritis and nephrotic syndrome. Nephrotic syndrome is a condition in which the kidneys leak too much protein in the urine.
“Marketing authorisation holders have been asked to provide further data and analysis to support the ongoing evaluation,” the European Medicines Agency said in its notice.
Moderna’s shares surged 17 percent to a record high on Monday, in part because the company’s coronavirus vaccine was licensed for use in Australia and Switzerland approved the injection for young people aged 12 to 17. Moderna’s valuation climbed nearly $200 billion on Monday, up more than 360 percent over the past year. That valuation makes Moderna worth more than drug and vaccine giant Merck (MRK).
Bank of America said in a note on Tuesday that the valuation was “fundamentally unreasonable”. The bank reaffirmed its $115 price target, implying a 76% downside from Monday’s close. Moderna’s shares fell 5.7 percent on Tuesday.