Monday, May 16

Covid-19 pharmas exhaust investors


Pharmaceutical companies that managed to bring a coronavirus vaccine to market were rewarded by investors with impressive stock market gains, especially those lesser-known companies in the market.

Such is the case of Modern, whose titles have risen in the last two years by 1,180 percent, Novavax, with a revaluation of its shares of 3,445.16 percent in the same period, or Biontech, with a rise of 173 percent.

The arrival of the vaccine meant an explosion of their businesses and their stock market performance by extension.

On the other hand, in the shares of the pharmaceutical giants that also market a serum against the coronavirus, the revaluations have been lower in the last two years.

Pfizer advanced 56 percent; Johnson & Johnson, 15 percent, and Astrazeneca, 14 percent.


Palpable weariness of investors

But already in 2021 the weariness of investors for these laboratories began to be noticed. Such is the case of Novavax, whose titles came to be worth 319.9 dollars at the beginning of the year, with the unapproved vaccine, to close it at 143.7 dollars.

Beyond the past race for which has been the first company to put a vaccine on the market or which has been the value that has risen the most in this time, the result for investors who bet on them in 2020 is a historic revaluation for your investments.

Y it seems that the time has come to start collecting a good part of the benefits, as can be deduced from the stock market performance of these companies and the falls in these values ​​in the heat of information about the coronavirus.

The falls are widespread since the middle of last year. Moderna loses 30 percent from the second part of 2021; Novavax, 55 percent, and Biontech, 30 percent. By contrast, Pfizer shares are up 40 percent.

No business beyond the vaccine

The experts consulted explain the difference between the performance of Pfizer and the rest of the laboratories due to pure business. Pfizer is one of the world’s largest pharmaceutical companies, diversified with numerous business lines, while Moderna, for example, did not have any products marketed before the vaccine.

Therefore, staying in stocks like Moderna without taking into account the coronavirus vaccine is trusting in a future where it manages to bring a drug or vaccine to market thanks to messenger RNA technology.

Its future lies in this technology, but there is no verifiable fact that it will triumph over more viruses or other pathologies. The company is now highly liquid thanks to stock market performance and vaccine revenues that give it muscle for research.

For the moment, The company estimates that by 2023 it will have an effective serum for both the flu and the coronavirus..

Ómicron complicates stock market valuation

Novavax is a similar case, being unknown to the vast majority of the population to date. Dips settle in value when you have started trading the product complying with the market saying of buying on the rumor and selling on the news.

Investors flocked to a company that has faced several delays to commercialization due to problems in the trials of its antidote against the coronavirus, while it rose on the stock market without knowing exactly what the market penetration of its vaccine was going to be.

Novavax has almost arrived with the third doses or booster doses of Pfizer and Moderna being applied to the population and the American company has to make room for itself in the space left by Johnson & Johnson (with its subsidiary Janssen) or Astrazeneca in the European Union, since Brussels has not bought doses from the British since June.

to this situation the omicron variant joins with a dance of studies that contradict each other between the efficacy capacity of vaccines existing against these variants or the ability of laboratories to create a specific serum in the short term for a variant that is not yet the majority worldwide.



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