The three healthcare stocks AnaptysBio, Inc. (NASDAQ:ANAB), Co-Diagnostics, Inc. (NASDAQ:CODX), and Novavax, Inc. (NASDAQ:NVAX) are all taking it on the chin this dark and gloomy Monday. AnaptysBio's stock fell by as much as 13.4%, Co-Diagnostics' shares dipped by as much as 26%, and Novavax's equity shed 23.1% of its value at one point today. These healthcare names have each clawed back from their lows, but they all remain down by at least 10% as of 2 p.m. EDT.
What's weighing on this trio of healthcare stocks today? A pair of black swans. First, crude oil prices collapsed over the weekend due OPEC's inability to reach a deal with Russia. Second, COVID-19 appears poised to trigger a worldwide economic recession due to its negative impact on the global supply chain.
Prior to today's drama, shares of AnaptysBio, Co-Diagnostics, and Novavax were all in positive territory for the year. AnaptysBio's stock was on the mend after a tough 2019, thanks to the growing optimism about several upcoming clinical and regulatory milestones slated for later this year. The biotech's collaboration with GlaxoSmithKline for their endometrial cancer drug, dostarlimab, also seemed to be attracting investors to its shareholder ranks this year.
The molecular diagnostic company Co-Diagnostics was in the midst of a stunning breakout before today due to its easy-to-use COVID-19 test kit. The company's shares, in fact, were up by over 1,300% for the year only a few days ago.
Novavax, for its part, was also up by over 200% for the year prior to today's downward slide. Investors were piling onto this clinical-stage biotech in anticipation of the company's forthcoming phase 3 NanoFlu results, as well as its experimental vaccine against COVID-19.
All of this positive momentum came to an abrupt halt today because of plunging crude oil prices and concerns about the economic impact of this deadly respiratory disease. That's the good news, in a sense. More specifically, these three healthcare stocks aren't tanking because of company-specific setbacks. So, if you liked these names last week, there's no logical reason not to add to your position on this pullback. After all, AnaptysBio, Co-Diagnostics, and Novavax all still sport the same fundamental value proposition they did at the end of the last week.