Coronavirus-Linked Stock Speculation Reminds Health Sector of Bitcoin
A medical staff member wearing protective clothing walks at the Wuhan Red Cross Hospital in Wuhan on Jan. 24, 2020.
Photographer: Hector Retamal/AFP via Getty ImagesThis article is for subscribers only.
The deadly coronavirus that has sparked stock rallies for a cluster of health companies developing drugs and screening tests reminds industry watchers of the frenzies that greeted other health scares -- and even the cryptocurrency craze.
Small-cap companies including Novavax Inc., Cerus Corp., Co-Diagnostics Inc. and Inovio Pharmaceuticals Inc. have seen shares surge this week as investors gobble up statements about their plans to help combat the outbreak. Conversations with investors, analysts and executives show many people are skeptical these products will reach patients before years of research and development, if ever.