A market perspective: How the race for a COVID-19 vaccine will affect pharmaceutical companies

Ever since the COVID-19 virus emerged and evolved into a global pandemic, investors have shifted their focus away from small biotech firms to larger pharmaceuticals with robust and structured manufacturing capabilities.

Once the COVID-19 vaccine is discovered, it may generate in excess of $10 billion dollars in annual revenue, but investors are betting that even if a small biotech company with limited funding and equipment discovers the vaccine, a larger company will most likely buy the drug from them.

Alternatively, the smaller company that discovered the drug and the larger company with the production and distribution capability could merge.

Gilead and Eli Lilly, two of the pharmaceutical companies taking center stage in the COVID-19 vaccine race, are foreseeing significant growth in their share value and a rise in innovation in the infectious disease area.

AstraZeneca’s growth in China took a hit given the Chinese economic situation due to the outbreak, and even more so in the EU and the US where large fractions of AstraZeneca’s total revenue is generated. Therefore, AZ joined with Sanofi in an effort to find a vaccine, which will eventually help them regain some of their losses. Continue reading »