As this coronavirus pandemic has progressed and situations have gotten worse in many places — governments and countries around the world have invested large sums of money in research and development, in the hope of finding some sort of cure or vaccine for this deadly disease. With billions of dollars being pumped into these pharmaceutical companies for a coronavirus vaccine and treatment options — business has been booming! Over the last few months of 2020 investors have seen share prices of these different pharmaceutical companies shoot up. This momentum has carried forward going into 2021 and investors are still seeing share prices of pharmaceutical companies increase at fast rates. This is especially being noticed in the particular pharmaceutical companies which were heavily involved with the process of the development of the Covid — 19 vaccine. Some of these companies include AstraZeneca, Novavax and Moderna. All three of these companies have seen significant increases in share prices over the last couple of months.
The graph clearly shows this increase in share value in these three pharmaceutical companies. Many investors are seeing these three companies as opportunities to grow their portfolio and all three of these companies have been in the spotlight on numerous financial articles worldwide. The most significant increase of share price being seen in the pharmaceutical company — Moderna, which saw a 715.5% increase in share value over the last two years. However, the graph also shows the pharmaceutical company — Pfizer (which has been a big name in the race for coronavirus vaccines) has seen a notable decrease in share value, with the company experiencing a 10.4% percentage decrease in share value since 2019. Financial experts say that the high cost of production and management of the vaccine along with the fast rate of growing competition in this race to create a coronavirus vaccine has reduced the investors’ trust in the company, Pfizer, to create an increased positive cash flow going into 2021, leading to a smaller potential for revenue in the company.
Moving forward, many investors continue to invest and pump money into these pharmaceutical companies and many of these companies have started to distribute doses of their treatments on a global scale which only adds to the total revenue of the company. However, many argue that as time goes on competition is increasing in this newly emerging race for coronavirus treatments, which is only going to decrease the revenue of these companies and drive down share values of companies like AstraZeneca. Personally, I believe that the demand for coronavirus treatments is only going to increase which will then drive up sales and revenue, which will be noticed by investors worldwide that will then invest in these pharmaceutical companies and further drive up share values.
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