The market seems to be hot for companies working on the Covid-19 vaccine. What do you think would be the top American companies to buy that would profit greatly form the vaccine?
162 companies worldwide working on a vaccine. Some drug companies have better track records. Some have never been able to produce a drug. Gilead has Remdisivir, and the stock is not gaining 100%. Inovio has never produced in 40 years, and the stock is on fire. I would look for safe healthcare stocks. If Pfizer or GSK fails to produce a vaccine, the companies will still sell the drugs they have been selling. Intuitive Surgical did well today, and they are not a vaccine company. Medtronic will keep pumping out a profit. Abbott is headed into some very big sales for years to come. Johnson and Johnson will be a part of Covid profits. Gauranteed. Their products are in use every day, in every hospital treating Covid. Gauze, med tape. Gloves, masks, wipes, IV lines, toothpaste...... Hospital supplies. Not just baby shampoo. A hospital spends $XXXX daily just for supplies and Johnson and Johnson makes a lot of that stuff. As patients leave ICU, then what? Will MediCare reorganize post acute facilities for recovery? REIT Welltower, Ventas, LTC, CTRE..... Nursing homes are taking a lot of heat right now for the infection and death rates. But as this continues, patients will have to discharge from hospital to recovery. There will be Covid nursing homes for that. Sysco and US Food. Who supplies food to all of the hospitals, nursing homes, prisons?
As I stand in front of the hospital, I see vendors. MedLine. Private. You can't buy it. McLane. Owned by Warren Buffett. You can buy Berkshire Hathaway for a $60,000 discount. Great price right now! Check out who is at the hospital making money every day.
There is no vaccine at the present. There may never be a vaccine. Companies are already profiting by trying to develop a vaccine. They get grants for research. The current hype is that these companies make an announcement, and everyone gets.excited. There is a bounty for every company.to effectively produce a vaccine - worldwide sales. Know that not 1 company will be able to supply the world. There will be licensing, subcontractors, distributors, etc who will all be in the supply chain to supply the world. Gilead has already discovered with Remdesivir that they can't make enough to satisfy demand. That's why they are issuing licenses for other companies to supply the drug in other markets. Those companies can manufacture and distribute those drugs, in those markets , to adjust for local economy and pricing. I would also look at an emerging markets or Asian markets fund with healthcare holdings. I am in a hospital right now. Here's a product used in the the Covid patient kit. I have only seen it from 1 supplier. Product with no competition. Now you just have to research how to invest. They use these with not just Covid, so there is a large demand and only 1 supplier.
Another company profiting without a product. Maybe they will make the vaccine. Maybe not. But they are making the money.
prevention vs. treatment. there is no vaccine for the RNA virus HIV too. only treatment. cynical said: companies make more money with treatment - because they can sell their products over many years. RNA viruses are nasty, because they changes. might be difficult for one vaccine to work over many years. i'm sure there will be some kind of vaccine for covid-19 - but i'm afraid we will need "updates" regularly. like windows: 3.1, 95, 2000, vista etc. so, who's that guy now, being very active in the vaccine industry???? ;-)
Maybe. Maybe not. Flu mutates. Flu viruses update and change. HIV is not as easily transmitted. Risky behavior was decreased. Blood donors are screened. Although people still have anonymous sex without a condom, and share needles. Test kits eventually became widely available. You can now buy test kits in Thailand, and test your prostitute before you engage in merger.
This is interesting. https://www.biopharmadive.com/news/coronavirus-vaccine-pipeline-types/579122/ I guess it doesn't matter who actually will get the vaccine made. Just being in the race is enough hype to make some money. I will sell before the finish line and maybe reinvest in the winner.
It's more than hype. It's real money. They are getting money from the government. Research grants. That's how these companies like Novavax, Vaxart, Inovio, Moderna...there are so many that you can't keep up with them all..... Stay in business. Private grants. Government grants. Private equity firms. Stock sales. Just no real income from selling products. Because they haven't developed a product - yet.
Is the hype generated from the money they get, or from the idea that one of the companies might get the vaccine to sell? I would not buy the stock if the hype was generated by the money because that could just be the one jump and things go down. But if the hype is generated from the idea a company is on the verge of a vaccine, then at least you have a time frame for the hype and can sell before everyone finds out if the hype paid off.
Both. Any money coming in is cash flow. Nonprofit donation. Grants. Venture Capital. The money is in the books. Company is valued by it. A financially successful pharmaceutical company has money coming in, stock values increase, causing more people to want to be a part of that profit. Any company out of 160+ could find a vaccine. More than 1 may be developed. Every bit of news causes a market reaction. Most people don't even know what the development actually means, but they get excited, and grab up the stock. Causing a stock price increase. Last week, a company announced successful completion of a trial phase. A handful of healthy people were given small doses of vaccine. Nobody died. No major reactions. Formulation is declared safe for that group. It doesn't mean that they have a vaccine. It just means that nobody died. Now they have to do the same thing with more groups of people. But stocks jumped up on the news. How you can pick which company gets a vaccine? I don't know. More than one can be developed. Flu vaccine changes with different strains. My own gut instinct is investing in companies which are active, have drugs on the market, and actually make money selling drugs which they developed. But a company who has never brought a drug to market has just as much of a chance. Maybe this is their turn at the pinata, and they crack it wide open.
Inovio has been doing this since 1983. It's not just a one time jump. Whether you believe that they could succeed this time, is up to you. But as a business, they are able to maintain funding, even without succeeding. It only took them 3 hours to figure out the vaccine. If the government would approve their vaccine, then you win.
