November 9, 2020
There could be light at the end of the tunnel for beleaguered movie theaters following positive news regarding coronavirus vaccine trials from Pfizer and BioNTech.
Citing the “first interim efficacy analysis” on its “Phase 2/3” clinical trial, Pfizer and BioNTech found 90% effectiveness seven days after the second dose of vaccine “BNT162b2” in preventing infection in test subjects who had never tested positive for coronavirus. The companies said they plan to review the results with regulatory authorities worldwide, including the World Health Organization.
“I would say it’s a historical moment,” Kathrin Jansen, head of vaccine research and development at Pfizer, told the Washington Post. “Something like this has never happened before. Hearing that at the interim analysis we are over 90 percent effective — it was almost stunning to hear.”
“The results are really quite good, I mean extraordinary,” added Anthony S. Fauci, director of the National Institute of Allergy and Infectious Diseases, who thinks a second vaccine could be produced by biotech firm Moderna, based on similar technology in use.
The news caused a spark of excitement on Wall Street, with investors rewarding movie theaters and biotech/pharmaceutical companies. Theaters, including most of Hollywood, have been operating under strict pandemic guidelines, resulting in fewer productions and pushing back major tentpole movie releases until 2021.
That, in turn, has resulted in fewer new-release home entertainment titles distributed via packaged media and digital channels.
AMC Entertainment, the world’s largest exhibitor, saw its stock skyrocket nearly 73% in early morning trading after months of shuttered screens and dwindling finances.
The No. 2 and No. 3 theatrical chains — Regal Cinemas and Cinemark — saw their parent stock increase 39% and 42%, respectively. Imax is up more than 27%; Marcus (+17%); Reading International (+13.9%); National CineMedia (+21%) and Theater Landlord EPR Properties (+27).
Meanwhile, shares of Netflix, Roku and other stay-at-home sources of entertainment fell in early trading. Netflix was down 7%, while Roku plummeted 12%. Video conferencing favorite Zoom saw share prices fall 19%, while fitness brand Peloton’s stock was down 24%.