Pharmaceutical stocks will be tied to Covid-19 next year

The shares of the main pharmaceutical companies that are listed on the stock market end 2021 with gains, but the outlook for 2022 remains uncertain as it depends on the evolution of the Covid-19 pandemic.

Moderna and BioNtech, two of the main developers of the Covid-19 vaccine, accumulate a performance of more than 100% less than three days before the end of 2021.

The discovery of new variants such as Ómicron and Delta, among the more than 7 variants declared by the World Health Organization (WHO) and 5 of them considered worrisome, is what keeps pharmaceutical companies alert to indicate if the vaccine that is applied to the population works to combat the variants.

In addition to continuing to develop medicines that are easily accessible for the population and for undeveloped countries.

In the case of Moderna, the laboratory based in Cambridge, United States, is listed at a price of $ 241.44 per share on the New York Stock Exchange, which means a return of 131.1% so far in 2021. It should be mention that the firm registers a yield of 1,134.4% since December 2019, since its shares had a value of $ 19.56.

For its part, BioNtech, which in collaboration with Pfizer developed another of the vaccines that is currently being applied to the population to immunize against the coronavirus, records a yield of 196.10% so far in 2021.

The pharmaceutical company shares are trading at a price of $ 241.40 on Wall Street, and it has a price return of 612.5% ​​in 24 months.

Pfizer, a partner of BioNTech, has a return in the year of 63.8% and its shares are sold at 58.01 dollars per share and in two years it has a profit of 60.1 percent.

Carlos Hernández, senior analyst at Masari Casa de Bolsa, explained that “for the pharmaceutical sector, the rise is likely to continue due to the fact that valuations or premiums are not as broad as other sectors, coupled with the fact that companies will continue to expand their operations” .

“You are likely to see a more focused performance by broadcasters. Those that continue with contracts of vaccine providers coupled with alternative treatment, such as pills against Covid-19, would be in a better position for fundamental and stock growth, “added the specialist.

Heriberto Sandoval, investment advisor at the consultancy Increase Kapital, said that “after the sharp rise in the shares of pharmaceutical companies in the last year, it is very likely that in the short term there will be an adjustment in their prices as part of the of the behavior of all stocks, however, the expectation in the medium and long term continues to be very positive for these companies ”.

Other pharmaceutical companies that developed the anticovid vaccines have not rebounded with the same strength in the stock market, such as Johnson & Johnson that rises only 11.0% and even Astrazeneca advances 19.90% in 2021.

AstraZeneca and Novavax said their vaccines protect against Omicron, and data from the UK suggests the new variant could cause fewer hospital cases than Delta, although public health experts warned that the battle against Covid-19 was far from over.

On the other hand, on December 17, the WHO added the Covovax vaccine from the American pharmaceutical company Novavax to the list of vaccines for emergency use, and so far in 2021, the firm has an increase of 39.8% on Wall Street .

Carlos Hernández added that “we will probably see a slowdown as a result of market-assigned valuations and consolidated performance. However, positive perspectives remain ”.

By 2022, the catalysts for the health industry will depend on alternative treatments against Covid-19 or special vaccines against some specific variant of the virus that is detected by the WHO, the expert concluded.

“The positive trend of pharmaceutical companies will continue in 2022, mainly for those that invest in a constant and relevant way in research and development. In addition, the demand for health products worldwide is growing, it is clear that pharmaceutical companies are in a very dynamic sector, so these companies are always attractive to investors ”, concluded Heriberto Sandoval.

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