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Vaccine Investing During a Global Pandemic

As of June 2020, the COVID-19 pandemic had already infected more than 5.3 million people across the globe and claimed the lives of over 343,000. As the virus continues to spread, social distancing guidelines and lockdowns are consequently extended and healthcare systems are overwhelmed like never before.  The world hopes for a vaccine to ease the tensions, but with all the uncertainty, most experts agree it will likely be anywhere from 12 to 18 months until the public sees a safe vaccine on the market.

Novavax is one of many notable companies racing to create a sustainable vaccine. The Maryland based biotech company will sponsor the first human study thus far.. Notably, shares of Novavax increased by more than 15 percent following the company’s announcement. Demonstrating further promise, the Coalition for Epidemic Preparedness Innovations (CEPI) granted Novavax up to $388 million in funding to support its efforts.  This type of investment support is vital to funding the vaccine’s development.

American drug maker Merck, on the other hand, saw a 3 percent increase in shares following the announcement of their vaccine attempts. Merck, working alongside nonprofit scientific research organization IAVI, plans to utilize recombinant vesicular stomatitis virus technology. This is the same technology used for the Ebola Zaire vaccine, which interestingly was also the first time that technology was approved for humans. The vaccine is still in preclinical development and the organizations are focusing on making it accessible and affordable to all.

Moreover, Merck is one of the five vaccine candidates the Trump administration chose under Operation Warp Speed. The selected drug makers will receive federal support via funding and assistance with clinical trials to help rapidly develop the much-awaited vaccine. The other candidates are Moderna, Johnson & Johnson, Pfizer and AstraZeneca — the only non-US company to make the list. The Operation illustrates how funding — and investing — inevitably play an immense role as there are incredible costs associated with research and development.

The Coronavirus pandemic has re-emphasized how vital medical progress is to our daily lives. As boomers continue to gray, healthcare technology will continue to be a growing investment theme.

‘Demand Vaccine’ is designed to help investors make an impact in medical development and benefit from the potential growth of this sector through a diversified portfolio.  Demand Vaccine will ensure that a plurality of your investments is going to companies who are presently and significantly contributing to medical advancement — especially to companies with drugs that are slated for release. To learn more, visit the ‘Demand Vaccine’ portfolio overview and schedule a video conference with one of our advisors today.

This report is a publication of Demand Wealth.  Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change.

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