Doesn’t roll off the tongue... “Omicron” is living rent-free in investors' minds. Markets have been on edge since the new Covid variant was identified in South Africa late last month. Omicron has since been detected in 20+ countries, including the US, which reported cases in at least 16 states. Some infected people were fully vaxxed. Experts said it would take weeks to assess Omicron’s severity, but here's what we do know:
- Most Omicron cases have been mild so far. The WHO’s chief scientist said existing vaccines were likely to offer some protection.
- Omicron is spreading more than twice as quickly as Delta in South Africa, and accounts for the bulk of new cases there.
- FYI: Several Covid variants have been identified, but Delta and Omicron are the only “variants of concern” so far.
Crank out the test tubes... Biden said he doesn’t expect to impose more lockdowns or vax mandates this winter, but he's working with vax makers on plans for Omicron-specific doses in case they're needed. BioNTech's founder said Omicron is unlikely to cause severe illness in vaxxed people, but Moderna’s CEO said it could make shots much less effective. How vax makers are prepping:
- Pfizer and BioNTech, Moderna, and J&J have already started working on Omicron-specific shots, in addition to testing the protection of existing ones. Pfizer and Moderna say an Omicron-focused vaccine could be ready in under 100 days.
- Financial boosters: Vaccines can translate into big profits. Moderna made $7.3B in profit on $11.3B in vax sales in the first nine months of this year. Pfizer, which is also selling vaccines at a profit, expects $36B in 2021 Covid vax sales.
Better safe than sorry… Dr. Fauci said existing boosters would likely protect against a wide variety of variants. But there are still a number of unknowns. If Omicron is severe, it could slow economic recovery, depress markets, and exacerbate supply problems — as Delta did. Dozens of countries, including the US, have already imposed Omicron-fueled travel restrictions, while vax makers prep new shots. It’s better to be overly prepared when public health is at stake: US Covid deaths this year recently surpassed 2020's toll.