Mounting cases of bird flu in humans are attracting day traders to invest in vaccine developers, reminiscent of past trading frenzies during outbreaks. CureVac NV saw a 15% surge in its stock as concerns over a potential bird flu outbreak escalate following a new case in Australia. Novavax Inc., focusing on an avian flu vaccine, experienced a third consecutive day of gains, reaching its highest level since December 2022.

Moderna Inc. and Pfizer Inc. also saw increases in their stock prices as reports emerged about discussions with the US government regarding bird flu vaccine development. Moderna and BioNTech SE, prominent Covid vaccine manufacturers, witnessed significant gains in trading, with Pfizer also rising.

Jared Holz, a health-care specialist at Mizuho, noted that bird flu is driving the momentum in vaccine stocks, with retail traders reacting to the headlines. Similar swings have been observed during past outbreaks like Ebola and Zika, with numerous companies vying to develop vaccines or treatments. However, only a few emerge successfully, with even fewer becoming well-known entities like Moderna or BioNTech.

Holz cautioned that the stock reactions have been notably strong and advised selling into the strength, as the impact on revenue from the illness remains uncertain. Nevertheless, the narrative surrounding the issue is gaining traction.

Prior to the recent case, many vaccine companies had already seen significant increases. Novavax’s stock surged after securing a licensing agreement with Sanofi and unveiling its bird flu plans. Moderna’s rally began following a patent victory against Pfizer.

As the concern over bird flu grows, investors are closely monitoring the developments in the vaccine industry, anticipating the potential impact on stock prices and market trends.