China is currently grappling with its worst COVID-19 outbreak since 2020, raising concerns that the pandemic might drag on even longer than expected. The country is witnessing the biggest surge in COVID cases since the original Wuhan outbreak, putting China’s “Zero Covid” policy to the test. With the new omicron variant, Omicron BA.2, pushing up cases worldwide, it appears possible that another wave in the U.S. could be around the corner.
Amid this, vaccine stocks are gaining traction as investors fear that the pandemic will take longer to resolve than expected, which could, in turn, drive demand for future vaccine orders. Furthermore, the vaccination drive is not likely to end anytime soon with the emergence of new COVID variants, nor will vaccine makers’ investments in research to develop better cures and booster doses to combat the crisis.
