The shares of Regeneron Pharmaceuticals Inc (Nasdaq: REGN) lost 2.73% or $17.87 to close at $636.53 yesterday following the company’s revelation that its COVID-19 antibody vaccine and other comparable medications may be less efficacious against the omicron variant of the coronavirus.
The Tarrytown, New York-based company stated that clinical studies indicate that individual changes in the omicron strain suggest a lower neutralizing ability of “both vaccine-induced and monoclonal antibody” imparted protection.
Regeneron also revealed that further research is being conducted to validate and accurately assess this possible effect using the real omicron variation. The company also pointed out that there is no concrete evidence as to whether the antibodies or vaccinations provide lower immunity.
Regeneron created the therapy in the same manner it developed a medicine for Ebola and four more drugs available in the market. The company uses genetically modified mice with immune systems mimicking that of humans. Mice, when treated with a target protein, generate human antibodies as retaliation.
The antibodies are used as input in medicines that have received clearance for the treatment of diseases such as high cholesterol, rheumatoid arthritis, asthma, and cancer. The strategy was praised by health professionals, including Dr. Scott Gottlieb, ex-FDA (Food and Drug Administration) Commissioner, as one of the most encouraging methods to use for the treatment of coronavirus.
In the case of COVID-19 disease, the mice were exposed to the SARS-CoV-2 virus. This was followed by the separation of hundreds of antibodies that neutralize coronavirus. Simultaneously, the researchers studied the antibodies drawn from people who have recovered from the disease to identify the best combination for treatment.
A year ago, Dr. George Yancopoulos, Regeneron’s co-founder, president and chief scientific officer, explained the reason to merge two antibodies: “you want to ensure if, God forbid, there’s a mutation or variation in the virus, you don’t lose [efficacy] due to that one antibody.”
The aforesaid strategy (antibody mix) turned out to be life-saving in a clinical test in the Democratic Republic of Congo two years ago.
The remarks come after Moderna’s CEO opined that COVID-19 vaccinations might not be successful against the omicron version, relative to other variants of the coronavirus. The World Health Organization and experts have pointed out that it might take several weeks to ascertain whether omicron is capable of inflicting sickness or evading vaccine-induced immunity.
Vaccine manufacturers are already bracing for the possibility that their existing vaccines would be less efficacious against the omicron strain, with many firms declaring that they had started development on vaccines customized to neutralize omicron.
The disappointing announcement about the COVID-19 vaccine by Regeneron is expected to keep its stock range-bound with a slight bearish bias in the short term.
The historical price chart indicates that the stock is descending after facing resistance near 640. The next support is anticipated near 575. Additionally, the stochastics indicator is making lower highs. Therefore, we are anticipating the stock to remain in a downtrend in the short term.
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