COVID-19 syringes less effective against Omicron?

The World Health Organization warned countries Tuesday of imposing blanket travel bans over the new variant of the Omicron coronavirus as governments and scientists try to find out how much protection current vaccines against the strain would offer.

Financial markets fell sharply after the head of drug maker Moderna (NASDAQ: MRNA) stated that existing COVID-19 vaccines against the Omicron variant were less effective. The MSCI index for stocks around the world lost 1.39% after falling across the board in Europe and Asia [MKTS / GLOB].

BioNTech's CEO adopted a cautiously positive tone, saying the vaccine the company makes in partnership with Pfizer (NYSE: PFE) would likely offer strong protection against the heavy Omicron variant that was first introduced a week ago southern Africa was reported.

Questions about the effectiveness of the vaccine came as cases of the new variant spread, with the first reported case in Latin America occurring in Brazil. Brazilian health authority Anvisa said a traveler from South Africa who arrived in Sao Paulo and his wife were both apparently infected.

As the Canadian health authorities announced on Tuesday, Canada will extend the entry ban for travelers from southern Africa to include travelers from Nigeria, Malawi and Egypt, thus covering a total of 10 countries. Health Minister Jean-Yves Duclos said Canada will require air travelers from all countries except the United States to take a COVID-19 test.

The US Centers for Disease Control and Prevention (CDC) advised Americans against traveling to Niger, Papua New Guinea, Poland and Trinidad and Tobago on Tuesday. After the White House announced new travel restrictions in response to Omicron, the CDC now lists around 80 travel destinations with the rating "Level 4: Very High".

The World Health Organization (WHO) urged countries to follow an "evidence-based and risk-based approach" in all travel activities, including possible screening or quarantine of international passengers. Blanket travel bans would not stop the spread of Omicron, it said.

The WHO issued a statement advising those who are unwell or are at higher risk of developing severe COVID-19 illness, as well as those 60 years or older and not vaccinated, to travel to move.

WHO director general Tedros Adhanom Ghebreyesus said he understood concerns about Omicron.

But he added: "I am equally concerned that several Member States are adopting blunt, blanket measures that are neither evidence-based nor effective in themselves and that will only exacerbate inequalities."

VACCINE QUESTIONS

The Executive Director of the European Medicines Agency (EMA), Emer Cooke, told the European Parliament that the existing vaccines will continue to provide protection.

Andrea Ammon, chair of the European Center for Disease Prevention and Control (ECDC), said the cases of Omicron confirmed so far in 10 countries in the European Union have been mild or symptom-free, but in younger age groups.

News of the appearance of Omicron wiped around $ 2 trillion in global stock markets on Friday after the disease was first discovered in southern Africa and announced on November 25th.

US markets reacted primarily on Tuesday to comments from Federal Reserve Chairman Jerome Powell suggesting a possible acceleration of the Fed's bond-buying program, but concerns about the impact of Omicron added to the nervousness, according to market analysts. The Dow Jones Industrial Average closed down 652.22 points or 1.86% to 34,483.72 and the S&P 500 lost 88.27 points or 1.90% to 4,567.

"I don't think there is a world where effectiveness is as high as Delta," Moderna CEO Stephane Bancel told Financial.

"I think it's going to be a significant drop. I just don't know how much because we're going to have to wait for the data. But all the scientists I've talked to are of the opinion, 'This is not going to be good.'

Reuters couldn't reach Moderna for comment.

Oxford University said there was no evidence that current vaccines would not prevent serious illness from Omicron, but that it was willing to quickly update its vaccine developed with AstraZeneca (NASDAQ: AZN) if necessary.

The administration of US President Joe Biden suffered two more legal setbacks in vaccination policy on Tuesday. A federal judge blocked a vaccination rule for healthcare workers and applied the ruling nationwide where the rule was still in force.

Another federal judge prevented the US government from enforcing vaccination regulations for state contractors in three states.

LAB TESTS

Regeneron (NASDAQ: REGN) Pharmaceuticals said its COVID-19 antibody cocktail and other similar antiviral treatments could be less effective against the newest variant.

EMA's Cooke said the "cross-neutralization," a laboratory test that shows whether the approved vaccines are effective against Omicron, would take about two weeks. Should a switch in COVID-19 vaccines be required, new vaccines could be approved within three or four months, she said.

"The vaccination will likely still save you from the hospital," said John Wherry, director of the Penn Institute for Immunology in Philadelphia.

Moderna and other drug makers such as BioNTech and Johnson & Johnson (NYSE: JNJ) are already working on vaccines specifically targeted against Omicron. Moderna also tested a higher dose of its existing booster vaccine.

BioNTech's managing director Ugur Sahin told Reuters that BioNTech and Pfizer's vaccine is likely to offer strong protection against serious illness through the new variant.

Sahin said he anticipates laboratory tests will show some loss of protection against mild and moderate illness due to Omicron, but the extent of that loss is difficult to predict.

BORDER CONTROLS

The border closings have already cast a shadow over the economic recovery, and a fourth wave of infections has emerged in parts of Europe with the onset of winter.

In Japan, the first case of the new variant was confirmed on Tuesday, namely in a traveler from Namibia. In Australia, a person suffering from Omicron was found to have visited a busy shopping mall in Sydney even though they were likely contagious.

Australia on Monday postponed the reopening of its international borders by two weeks, less than 36 hours before foreign students and skilled migrants are allowed to return.

Both the UK and the United States have pushed ahead with their refresher programs in response to the new variant. London announced that international newcomers will have to self-isolate until a PCR test gives a negative result.

Greece said that vaccination is compulsory for people over 60, the group believed to be particularly susceptible to COVID-19.

In Germany, a current hotspot of the earlier significant variant Delta, the average infection rate over seven days fell slightly for the first time in three weeks after new restrictions were imposed to slow down transmission.

France reported the highest daily infection rate since April. The Dutch health authority said that Omicron is already spreading in the Netherlands, where beds are becoming scarce in intensive care units and measures, including restrictions on hospitality, are not yet taking effect.

The restrictions on travelers from southern Africa have highlighted the uneven distribution of the vaccine, which may have given the virus more opportunities to mutate.