The race between pharmaceutical companies to find the vaccine against Covid-19 is over, and the finalists are Pfizer / BioNTech, Moderna, AstraZeneca, Johnson & Johnson and Cansino Biologics, although none is crowned as the savior of the world.
Since March 2020, when the Covid-19 pandemic attacked the world, companies in the health sector began research to develop a drug to combat the virus, now Pfizer, Moderna, AstraZeneca, Johnson & Johnson and Cansino Biologics produce millions of doses to immunize the population and end the pandemic.
While the application of vaccines against Covid-19 progresses, investors in the stock market place their expectations on the companies that have the best performance in immunizing the population, leaving aside those that face consequences for the health of the population. .
The Cansino Biologics laboratory, which is listed on the Hong Kong Stock Exchange, has a yield of 253.79% from March 2020 to the end of March this year. The last shipment of doses to Mexico was 432,000 vaccines.
During 2020, the pharmaceutical company had a yield of 200% in the value of its shares and this 2021 accumulates an increase of 89.58 percent.
In Mexico alone, more than 9.67 million vaccines have been applied among medical personnel and adults over 60 years of age. The doses were contracted to different global pharmaceutical companies such as Pfizer, in collaboration with BioNTech, AstraZeneca, Cansino Biologic, Sputnik and Covax.
Another company in the health sector that has stood out during the pandemic has been Moderna, whose titles increased 338.25% between March 2020 and March 2021, while last year they rose 434.10% from 19.05 to the 131.47 dollars in which they are traded on the New Stock Exchange. York.
The shares of the American Johnson & Johnson had a rise in their value of 17.38% between March 2020 and March of this year.
Pfizer has had a marginal growth of 3.87% between the third month of 2020 and March 31, 2021. The German BioNTech rose 198.3% between March 2020 and March 2021 and this year it gains 39.01% on the German Stock Exchange
AstraZeneca shares gained 8.39% between March and March. But this year they fall 3.14% after revealing cases of thrombosis among the patients to whom it was applied.
The most effective vaccine to combat the virus is that of Pfizer / Bio NTech with 94.6%, Moderna 94.1%, Johnson & Johnson 72% and AstraZeneca 70.4%.
Carlos Hernández García, Senior Stock Market Analyst at Casa de Bolsa Masari, commented that “the pharmaceutical companies in charge of the production of vaccines are having problems with world supply, which is natural due to the rapid adaptation process they had to go through. and develop. Even so, there is a growth outlook for companies for this and next year ”.
Luis Alvarado, Capital Analyst at Banco Base, explained that “in general, the pharmaceutical companies that developed and are producing vaccines did make profits, but it was not a massive boost for millions of doses sold, since it was agreed to sell them at cost and not profit during the pandemic ”.
He stressed that what can boost prices in the medium and long term is that the coronavirus is considered endemic “and it will not disappear with herd immunity, but it will be around for a lifetime.”
He added that before this, the vaccination will be seasonal and those sales are the ones that would raise the valuations ”.
Considering that the production of vaccines will be permanent, Carlos Hernández said that it is a sector that looks attractive, both in terms of valuation and perspectives.
“Health sector revenues are expected to grow more than 15% annually in the first quarter of this year,” said the analyst.
On the NASDAQ
LumiraDx will go public with a SPAC
The diagnostic laboratory that produces Covid-19 tests, LumiraDx, will go public through a reverse merger with a special purpose procurement company (SPAC).
Bloomberg announced Wednesday that the UK-based firm will combine with CA Healthcare Acquisition in a deal that values LumiraDx’s capital at $ 5 billion.
While there is no equity placement attached to the transaction, LumiraDx obtained a $ 300 million loan from BioPharma Credit and an additional $ 100 million revolving credit line based on assets from Capital One Financial, according to Bloomberg.
At $ 5 billion, the LumiraDx settlement is the largest last year by a healthcare company with a SPAC.
LumiraDx’s diagnostic offerings include its highly sensitive Covid-19 antigen test, which has been used by the UK’s National Health Service (NHS) and is licensed for emergency use by the Medicines Administration. and Food (FDA) of the United States.
It also offers POC tests for Covid-19, INR, and D-Dimer antibodies, all available in Europe.
SPACs have become the investment mechanism of choice for medical technology companies and other industries as the United States emerges from the Covid-19 pandemic and the resulting recession.
Under the terms of the transaction, current LumiraDx shareholders will retain all of their existing interests in the combined company, with additional capital from the CACH cash in trust.
CEO Ron Zwanziger and other co-founders of LumiraDx will lead the company, while its board of directors.
After the transaction closes, LumiraDx and its common stock are expected to trade on the NASDAQ under the ticker symbol LMDX.