In a market ravaged by the coronavirus, a few biotech stocks surged on the hope they’ll fight the scourge. But the bug isn’t all good for the biotech business. Clinical trials and regulatory reviews may slow amid the outbreak’s disruption. New drug launches could suffer. These are the mixed findings of a Tuesday morning report by the research team at RBC Capital Markets.
Treatments against the Covid-19 virus are under development at Regeneron Pharmaceuticals (ticker: REGN), Gilead Sciences (GILD) and Inovio Pharmaceuticals (INO), says RBC, and could produce sales if they prove effective. But the virus may slow product timetables at other companies—including Intercept Pharmaceuticals (ICPT), Sarepta Therapeutics (SRPT) and Sage Therapeutics (SAGE)—whose clinical trials and meetings with government regulators might get postponed.
RBC canvassed companies, bureaucrats and suppliers for the report on the current and future impact of the coronavirus. “While the current coronavirus situation appears relatively manageable for our covered companies,” says the firm, “we do see potential for an escalating negative impact to some degree on uptake but [to a] greater extent on clinical trials.”
