Should You Invest in the Vaccine Makers?

Demand for COVID-19 vaccines has seen interest in pharma stocks soar, but Morningstar analysts think this is a temporary trend.

Morningstar 22 January, 2021 | 1:55AM

Vaccine

The scale of the COVID-19 pandemic has created unprecedented demand for vaccines. As governments across the globe now rolling out vaccination programmes, the market for coronavirus innoculations is expected to be worth US$39 billion, with another US$10 billion for other COVID-19 treatments.

The result of all available treatments, according to Morningstar's calculations, is that up to 3.3 billion people will receive a vaccine this year. That is far less than the 5 billion vaccines that the manufacturers themselves say they will deliver in 2021, but takes into account delays and delivery issues.

The shortfall is likely to come from problems in various areas, such as stock shortages (think of a lack of raw materials, machines and injection needles), transport (as many vaccines areunder strict temperature conditions) and governmental issues as the general public must be convinced of the need for vaccination.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
AstraZeneca PLC ADR50.74 USD-0.18
BioNTech SE ADR151.54 USD7.69
Gilead Sciences Inc66.87 USD1.67
Merck & Co Inc77.47 USD1.06
Moderna Inc170.81 USD6.84
Pfizer Inc38.57 USD2.58

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