The top five American technology stocks, led by Apple Inc, have accounted for more than 20% of the S & P 500 index, and the market is worried about a bubble, but this year's pharmaceutical and biological companies are more hyped than technology stocks, although they are not as strong as technology stocks in terms of market capitalization.

Moderna Inc announced that his COVID-19 vaccine (mRNA-1273), which he is developing, has been shown to produce an immune system response in volunteers in its early clinical trials, thus helping to ward off novel coronavirus. The stock has risen more than 300% since march, and its market capitalization has soared to nearly $30 billion from about $7 billion at the start of the year.

Dynavax, another US biotech company, also announced that it is using adjuvant to develop COVID-19 vaccine, which is also used in vaccines against hepatitis B. The stock has risen tenfold since the end of March.

Not only have listed pharmaceutical stocks soared, a large number of unlisted pharmaceutical companies have also taken advantage of this "epidemic east wind" to list. According to Dealogic's data,Pharmaceutical and biological companies listed in the United States this year have raised about $9.4 billion through IPO. That figure has surpassed the $6.5 billion for the whole of 2018, an all-time high.

The shares of pharmaceutical and biological companies listed this year rose an average of 34% on the first day of IPO.It was the highest average first-day increase since the dotcom bubble in 2000.

Not only IPO is popular, but also IPO financing is not bad.Pharmaceutical biotech companies have raised more than $32 billion so far this year, the highest level in a year, according to Dealogic.

The most exaggerated example is Kodak, which has declared bankruptcy several times. Kodak, which has been zombie on the trading market for nearly three years, rose more than 30-fold in two trading days after it announced that it had received government subsidies to start developing a vaccine.

This phenomenon worries many investors who have been engaged in medical investment for many years: the main products of many newly listed pharmaceutical companies may still be under research and development, their safety and effectiveness are still in doubt, and blind investment may suffer losses.

Because the most important investment logic of pharmaceutical biological companies is the efficacy of drug research and development, but at this stage, the announcements of many companies are only in the research stage, and the final efficacy has not yet been verified. The most obvious example is Kodak, which rose sharply after announcing the start of vaccine development, and suddenly announced that the company's $765 million drug raw material loan agreement with the US government had been shelved, falling nearly 30 per cent on the day.

"the market is crazy right now because many companies' products are in their early stages," said Marshall Gordon, a senior medical and biotechnology industry analyst. Unless there is strong proof, we will not pursue these laboratory technologies.

Even though vaccine research and trials are going on rapidly, it takes a long time from research and development to approval and clinical proof of safety and effectiveness.

According to the US Food and Drug Administration,About 70% of the drugs passed the first phase of the clinical trial, only 70% of the first phase successfully completed the phase 2 trial, and even fewer drugs completed the phase III trial.As a result, although it may only take a few months to develop a drug, subsequent trials may last for years, and the risks involved have been there.