Covid test, vaccine maker stocks jump as cases surge in Asia

Shares of Covid test kit and drug makers in Asia rose following a surge of cases. 

South Korean diagnostic kit maker Sugentech Inc. was among the top performers, jumping as much as 29% on Monday. In Japan, shares of Covid vaccine maker Daiichi Sankyo rose as much as 7.4 per cent after its price target was raised at UBS. In Hong Kong, shares of Shanghai Junshi Biosciences Co., which also makes Covid jabs, gained as much as 4.3 per cent.

Health authorities in densely-populated Hong Kong and Singapore have warned that Covid-19 cases are spiking, as a resurgent wave spreads through Asia. China is on track to see a Covid wave reach last year’s summer peak, according to data from the Chinese Center for Disease Control and Prevention.

“After the resumption of normalcy, Hong Kong experienced cycles of active periods of Covid-19 in every six to nine months,” said Edwin Tsui, controller of Hong Kong’s Centre for Health Protection, according to a press release. “We expect the activity level of Covid-19 to remain at a higher level for at least the next few weeks.”

Korea Disease Control and Prevention Agency last month extended its seasonal Covid vaccination period by two months until end of June, advising people aged 65 and above, most immunocompromised individuals, hospital patients and those in facilities to get inoculated with the JN.1 shot from Pfizer Inc. and BioNTech SE.

“Covid-19 has been increasingly occurring not only in winter but also in summer for the past three years, so it is recommended to get vaccinations as soon as possible to allow for a sufficient period of immunity,” KDCA said in a statement.

Shares of Korean Covid test-kit makers, including Humasis Co., LabGenomics Co., Seegene Inc., and SD Biosensor Inc., all gained on Monday. Covid vaccine maker SK Bioscience Co.’s stock jumped as much as 7.2%.

“In Korea’s pharmaceutical small-cap space, retail-driven flows remain dominant,” said Gary Tan, portfolio manager at Allspring Global Investments in Singapore. “Retail investors may be positioning opportunistically in select names within the sector.”