The Impact Of COVID-19 Pandemic On The Stock Prices Of Biopharmaceutical Listed Companies

The COVID-19 Pandemic outbreak began in Wuhan,Hubei Province,China in January 2020.On January 30,2020,the World Health Organization declared that the outbreak of COVID-19 had constituted a public health emergency of international concern,which has had a significant impact on the global economy.Without exception,the macroeconomy in China has been seriously affected,and many industries are facing severe challenges.However,due to the crucial role played by the pharmaceutical and biotechnology industry in controlling the epidemic,many companies in this industry have performed well during the epidemic,and their stock prices have remained stable or even increased.Against this background,this article analyzes Guangdong Hybribio Biotech Co.,Ltd..(hereinafter referred to as" Hybribio Biotech")as a case study.As a leading domestic supplier of nucleic acid molecular diagnostic products,Hybribio Biotech has been deeply involved in the field of nucleic acid molecular diagnosis for many years,with a certain market scale and relatively stable business operations.Therefore,Hybribio Biotech is a typical representative of this industry.Therefore,studying the impact of the COVID-19 Pandemic on the stock price of Hybribio Biotech reflects the impact of the COVID-19 epidemic on the stock prices of the pharmaceutical and biotechnology industry,which is of practical significance.This article first reviews the current research status of COVID-19 domestically and abroad,and then provides theoretical foundations and mechanism analysis for the case analysis of the impact of the COVID-19 Pandemic on the stock prices of listed companies based on the relevant theories and factors that affect the changes in the stock prices of listed companies.Secondly,it introduces the profile of Guangdong Hybribio Biotech Co.,Ltd.,and analyzes the impact of the COVID-19 Pandemic on the pharmaceutical and biotechnology industry and Hybribio Biotech from the two dimensions of the company’s performance and stock price performance.Based on this,using Hybribio Biotech and a sample of 30 listed companies in the same industry,this study employs the event study method and panel regression model through Stata to analyze the impact of the COVID-19 pandemic on Hybribio Biotech’s stock price,with empirical analysis focused on the industry and the individual company.The study delves into the extent to which Hybribio Biotech’s stock price and its main business are affected.Finally,conclusions are drawn based on the empirical analysis.The research findings indicate that:(1)The outbreak of COVID-19 has a significant positive impact on Hybribio Biotech’s stock price,and the impact effect lasts for a relatively long period of time;(2)As the domestic epidemic gradually comes under control,the benefits to the industry decrease,and investors’ sentiment shifts to other stocks related to the normal recovery of society.Hybribio Biotech’s relatively diversified business matrix makes it less susceptible to negative impact;(3)The impact of the COVID-19 pandemic on the pharmaceutical and biotech stock market is more short-term and limited,and originates from impulsive emotions.Factors that can have a long-term and sustained impact on pharmaceutical and biotech stocks are mainly the overall macro environment and the development strategies and conditions of listed companies themselves.The COVID-19 pandemic has a greater impact on Hybribio Biotech’s medical services and medical equipment businesses,and a smaller impact on pharmaceutical commercial businesses.Therefore,this paper proposes suggestions from the perspectives of the government,industry,enterprises,and investors on how to respond to the impact of the epidemic.These suggestions provide important policy value and reference for stabilizing the market and ensuring the stable development of the Chinese economy during major public health emergencies.