Alpho: Problems with the delivery of vaccines correct stocks of pharmaceutical companies

After the enthusiasm in early January when logistics of vaccines against Covid-19 got underway and the stocks of pharmaceutical companies were growing, mid-January experienced correction of the stock prices. The negative news on the delay of the Pfizer and BioNTech vaccine caused the stocks of both companies to go into the red. Moderna announced temporary reduction of supply several days ago, incurred the greatest loss last month.

The beginning of 2021 is characterised by a vaccination marathon combined with the effort to protect population and prevent the spread of COVID-19. The first approved vaccine produced by Pfizer and BioNTech has been gradually joined by the Moderna and AstraZeneca vaccines. Yet, the problems with delivery have caused correction of values of certain pharmaceutical companies these days.

The undoubtedly good news is that according to a recent study, the Pfizer and BioNTech vaccine is supposed to work against the UK coronavirus mutation. On the other hand, the information on delayed supplies of ordered vaccines to the European states is very negative news for the company’s stock.

Moderna has also seen its stock drop over the last month while, for example, the stocks of AstraZeneca, which has developed its vaccine in cooperation with the University of Oxford, have grown by 3.7% over the last month. The company’s value is on the rise also because scientists are working on the modification of its composition so that the vaccine works against new coronavirus mutations from the UK, the Republic of South Africa and Brazil.

Johnson & Johnson may shuffle the market cards as it published information that just a single dose of its vaccine should be sufficient while all other above-mentioned vaccines require two doses. The company’s stock went up by more than 6% over the last 30 days because of the positive news. If the company succeeds in demonstrating its vaccine efficacy and providing supplies to the market, the company’s stocks may go up significantly. Further delays relating to supplies to various global markets and production of individual doses of vaccines may have a negative effect on the stocks of pharmaceutical firms.

Lưu Đỗ Hoàng Anh

Chief analyst of Alpho

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