The most beaten-up stocks in the FTSE 100 have surged up to 40% as a Covid-19 vaccine from Pfizer and BioNTech is shown to be effective in over 90% of cases in its phase III drug trial.
The US pharmaceutical giant and German biotechnology company reckoned they will have accumulated enough safety data by the third week of November to apply to the US Food and Drug Administration for emergency use authorisation.
The FTSE 100 had already been performing strongly on the back of Joe Biden becoming US president-elect over the weekend. But the joint press release from Pfizer and BioNTech, published at 11.45am GMT, pushed it higher. Germany’s Dax index rose 5.8% and France’s CAC gained 7%.
Pfizer said it plans to discuss the findings with regulatory authorities worldwide and that it had capacity to produce up to 50 million doses this year and 1.3 billion in 2021.
Interactive Investor head of markets Richard Hunter said beneficiaries of the rally were widespread, particularly among the more beaten down sectors. “The airlines and airline-related stocks are on a tear, rising in some cases by over 25%, while housebuilders, banks and retailers are all in the boat currently being lifted by a rising tide.”
British Airways-owner IAG had hit 30% by 1pm. Rolls Royce was the highest performer from the large-cap index up 41.3%, while house builder Taylor Whimpey was up 17%. In the FTSE 250, Cineworld led gains rising 44.5%, while Carnival was up 34.3% and Easyjet had risen 25.7%.
Hunter added: “The Pfizer announcement is not yet a panacea, but adds to investor sentiment which had already been buoyed by the Biden victory, and has sent markets to strongly positive levels.”
See also: Covid vaccine and rising inflation could provide a cure for flatlining value
‘A great day for science and humanity’
In total, 43,538 participants have enrolled in the trial of the mRNA-based vaccine candidate, BNT162b2, to date, with 38,955 receiving the required double dose of the vaccine. A placebo was also used to deduce the efficacy rate.
So far, there have been 94 confirmed Covid-19 cases in trial participants with the efficacy rate indicating over 90% of those were receiving the placebo. A final analysis will be conducted once 164 cases have been accrued.
An independent data monitoring committee reported no serious safety concerns and recommended the study continue to collect additional safety and efficacy data, which Pfizer said would come within a matter of weeks. The press release warned the final efficacy percentage rate may vary.
Pfizer chief executive and chairman Albert Bourla said it was “a great day for science and humanity”.
“We are reaching this critical milestone in our vaccine development program at a time when the world needs it most with infection rates setting new records, hospitals nearing over-capacity and economies struggling to reopen. With today’s news, we are a significant step closer to providing people around the world with a much-needed breakthrough to help bring an end to this global health crisis.”
The study will also be expanded to examine efficacy in participants who have already been exposed to Covid-19 and prevention against severe presentations of the disease. The study has so far focused on efficacy from a week after the second dose, but different timelines will also be evaluated.
Both US and global participants came from ethnically diverse backgrounds, the press release said.
See also: Healthcare fund managers caution against getting caught up in Covid-19 vaccine hype
