Markets jolted as Moderna says COVID shots weaker against Omicron
HONG KONG/SYDNEY, Nov 30 (Reuters) – The chief executive of drugmaker Moderna (MRNA.O) set off fresh alarm bells in financial markets on Tuesday with a warning that existing COVID-19 vaccines would be less effective against the Omicron variant than they have been against the Delta variant.
Major European stock markets fell around 1.5% in early trade, Tokyo’s Nikkei index closed down 1.6%, crude oil futures shed more than 3%, and the Australian dollar hit a one-year low as Stephane Bancel’s comments spurred fears that vaccine resistance may prolong the pandemic.
“There is no world, I think, where (the effectiveness) is the same level . . . we had with Delta,” Bancel told the Financial Times.
“I think it’s going to be a material drop. I just don’t know how much because we need to wait for the data. But all the scientists I’ve talked to . . . are like ‘this is not going to be good’,” Bancel said. read more
Balancing that, however, European Medicines Agency (EMA) executive director Emer Cooke told the European Parliament that even if the new variant becomes more widespread, existing vaccines will continue to provide protection. read more
Moderna did not reply to a Reuters request for comment, or say when it expects to have data on the effectiveness of its vaccine on Omicron, which the World Health Organization (WHO) says carries a very high risk of infection surges.
Bancel had earlier said on broadcaster CNBC that it could take months to begin shipping a vaccine designed for the new variant.
Cooke said that lab tests for “cross neutralisation” would take about two weeks. If there were a need to change COVID-19 vaccines, new ones could be approved within three or four months, she added.
“Vaccination will likely still keep you out of the hospital,” said John Wherry, director of the Penn Institute for Immunology in Philadelphia.
Moderna and fellow drugmakers BioNTech and Johnson & Johnson are working on vaccines that specifically target Omicron in case existing shots are not effective against it. Moderna has also been testing a higher dose of its existing booster. read more
Uncertainty about the new variant has triggered global alarm, with border closures casting a shadow over a nascent economic recovery from the two-year-old pandemic. read more
News of its emergence wiped roughly $2 trillion off global stocks on Friday, but some calm had returned on Monday.
First detected in southern Africa a week ago, Omicron is known to have spread to over a dozen countries.
Japan, the world’s third largest economy, confirmed its first case on Tuesday, in a traveller from Namibia. Australia found that a person with Omicron had visited a busy shopping centre in Sydney while probably infectious.