Do I invest or not ? Always the same question, why not invest in companies that study the vaccine?
Google Trends says that more and more users are looking for the word vaccine anti-coronavirus and the company that will do this miracle. According to the WHO there are more than 50 companies that are working on it but not all are listed on the stock exchange, this article will treat those that can be purchased but be careful because only one will succeed, so it’s like playing at Las Vegas casino.
First of all the development of a vaccine takes time and a lot of money, several companies already had vaccine platforms (Sars, Ebola) and today they are ahead in terms of speed of experimentation and production. Pharmaceutical companies expect to have an experimental coronavirus vaccine by the end of the summer, so if we’re lucky the vaccine would be released by mid-2021, I have doubts because given the complexity and aggressiveness with which the tests spread will be many.
The rules provide for 3 steps, sometimes it is enough a web news or a Tweet to make a stock soar and then maybe it was just a “failed test” that cost you a lot of money on the trading account (see in February iBio Isin: US4510332038).
I did a qualitative analysis of the companies taking some criteria: budjet to invest, risk profile and experience in the field of vaccines. I’m talking about 3 companies linked to billionaire Bill Gates: Moderna that has already started a human test in Seattle, Novavax which is being tested on animals and Inovio that predicts by the end of the summer results on vaccine research.
Other companies are working with a different approach and I’m talking about global giants like Pfizer, GloxoSmithKline and Sanofi. The road to go is long, as written above timing and peculiarities of the vaccine are complex but I think a solution will be found.
On a technical level I recommend to monitor these titles, pay attention to the volumes and if I had to choose I would buy Sanofi’s stock because in addition to the vaccine’s work they studying and developing new patents that will have interesting results in the coming years.