The third wave of the coronavirus keeps investors’ interest in pharmaceuticals alive. The sector, traditionally defensive, found in the research of vaccines the argument to raise their prices to record levels. The companies most benefited are Moderna, BioNTech, Novavax or Curevac -the newest on the Stock Market-, while other firms such as Pfizer, Sanofi or Astrazeneca They have lagged somewhat, although all have experienced strong bullish rallies. Now, the question that many investors are asking is whether the pharmaceutical sector will continue to climb positions in the stock market.
« At a time when the coronavirus spreads uncontrollably again – and more so after the Christmas holidays – all news related to vaccines to fight Covid-19 are being and will be very well received by investors. Stopping the spread of the virus and ending the pandemic is vital to achieving stable economic growth again, « they explain from Investing.com.
Modern It is one of the proper names that is squeezing the most its vaccine in the Stock Market. Its shares have already appreciated more than one 26% so far this year on the Nasdaq, and they shot up to 470% in the accumulated of 2020. In addition, and although in the final stretch of the year it experienced a slight correction, it reached its historical maximum in December, reaching 169.86 dollars per share.
The most bullish companies are Moderna, BioNTech, Novavax or Curevac -the newest on the stock market-, while other firms such as Pfizer, Sanofi or Astrazeneca have lagged somewhat, although all have experienced strong bullish rallies
BioNTech, the partner of Pfizer, also accumulates an annual revaluation of 26%, up to around 102 dollars per title. The German company can boast of having improved its stock price by 150% at the end of 2020 and of being one of the investors’ favorites. As to Pfizer, its price shot up about 10% in a single session – coinciding with the announcements of its vaccines-, although so far this year its path is flat. The American company has temporarily reduced the distribution of its vaccine in the Old Continent, although it has promised to comply with the deliveries stipulated for the first quarter. Pfizer says it has made that decision with the goal of increasing its production capacity of 1,300 to 2,000 million doses per year.
Although the market is discounting a scenario in which coronavirus vaccines are effective and safe, there are also risks that they will not be as effective as expected.
Precisely, the XTB experts highlight the importance of complying with the vaccination periods. “Vaccines are the solution to the pandemic and therefore are a stimulus for the stock markets, despite being uncorrelated from the real economy. As the vaccination period predicted by the market is completed or not, it will be a stimulus or a penalty in the bags. In addition, contagion cases must remit based on what is expected by the market ”, explains Ramón Valverde, analyst at XTB.
Although the market is discounting a scenario in which coronavirus vaccines are effective and safe, there are also risks that they will not be as effective as expected. “It would be a very hard blow to the markets if the vaccines failed. In fact, the WHO and laboratories have already been quick to say that vaccines are likely to be effective against virus mutations, but the new British strain is a red light to keep an eye on, as there could be more strains in the world. future ”, explains Diego Morín, IG market analyst.
The expert also highlights that the advances that many of the American pharmaceutical companies are experiencing are due to the strong aid or liquidity injections that the Federal Reserve, and also because of the attractive investor that the United States has always had.
Novavax and Curevac
Novavax and Curevav They are two of the pharmaceutical companies that have made the most of vaccine advances. The first one -whose vaccine is in phase III- has advanced more than 13% in the Stock Market since the beginning of 2021. All, after closing the year with a spectacular rise of more than 2,870%, although at some moments the value came to skyrocket by above 4,300%, marking 178.51 dollars per share.
But above all those listed is Curevac. The German Pharmaceutical Laboratory –Bayer’s ally in vaccine research– It was the one that performed the best in the markets in 2020, and already has an advance of close to 28% so far this year. The company, which debuted on the stock market last August, increased its price by 4,200% in 2020.