Coronavirus Stock Market: How To Profit With Medical Advancements

This pharm article about Coronavirus and the stock market was written by Gabriel Plat, a Financial Analyst at I Know First.

Coronavirus Stock Market

Summary

  • The COVID-19 pandemic left an opportunity for companies to profit by developing treatments and vaccines;
  • Gilead and CytoDyn already started clinical trials with their drugs;
  • Partnering with other companies is also a strategy to reach the treatment faster than the competition;
  • These companies’ stocks can be a huge opportunity to profit in the near future.

The Opportunity To Profit Is Here

By the time the Coronavirus outbreak started to spread outside China, the stock market started to collapse. Sectors in every country in the world suffered a huge impact due to COVID-19 and enforced quarantine measures. However, an opportunity appeared on the horizon.

Considering the moment we are living, the whole world is waiting for a vaccine or a cure for COVID-19. Hence, this opens a huge opportunity for companies to chase the pot of gold at the end of the rainbow.

The demand for something to stop the pandemic is huge right now. Any company that develops the solution will have its turning point, increasing its profit and most probably reaching another size from now and beyond. The first company will be awarded not only this demand but also the confidence of the market. In case of another similar outbreak in the future, this particular company would be the first to be reached since it gained the trust of solving the last pandemic.

But which companies are chasing this path?

The Race Already Started!

4 Reasons Biotech Stocks Are a Buy Right Now | The Motley Fool
(Source: Getty Images)

In my last article, I talked about trending medical and biotech companies in the middle of the Coronavirus pandemic. They were linked not only to the cure or vaccine but also the equipment used by medical staff during this pandemic. Here the topic is only one: the companies who are openly chasing the solution to end the pandemic. Here are some of them:

Teva Pharmaceutical Industries (NYSE: TEVA)

By the moment the US Food and Drug Administration (FDA) approved the use of chloroquine phosphate and hydroxychloroquine to treat patients with COVID-19, Teva stock (TEVA) rose 12.6% in the New York Stock Exchange (NYSE). Teva is one of the companies that produce this drug and already donated millions of tablets to US hospitals. Even though the chloroquine is an old drug used to treat malaria, the substance is showing good results against the new coronavirus.

On April 5th, I Know First AI Algorithm issued a bullish forecast for TEVA, in a good agreement with the forecast TEVA returned to investors 23% in one week 

CytoDyn (OTC: CYDY)

The American biotech company is also one of the companies developing a treatment for COVID-19. This week, the company announced that it filed a request with the FDA to discuss new data that can improve the leronlimab, the company’s treatment. Leronlimab, a drug used to treat cancer and HIV, is showing good results against COVID-19 and is now in the phase 2 trial with the FDA. The manufacturer says that in four weeks the drug can be approved for use.

Gilead Sciences (NASDAQ: GILD)

Another biotech company and another possible treatment solution on the horizon. Gilead is conducting trials not only in the U.S. but also in China. In February, China’s Food and Drug Administration approved the use of Remdesivir, Gilead drug.

The treatment is now in the Phase 3 trial. Gilead said on March 3 that they will evaluate patients with moderate and severe COVID-19 in Hong Kong, Singapore, South Korea, and the United States during the whole month. The results should be published by May.

Partnering Is Also An Option

Source: Flickr

In Brazil, there is an expression that can be translated as “one hand washes the other”. This means that two people can help each other and both can get benefit from it. In a situation that all countries in the world are waiting for a solution, an alliance between two or more companies could get them ahead of the competition and develop the treatment quicker.

This is not a mere idea or only a guess. This type of partnership is already being done between different companies and the results are starting to appear.

Johnson & Johnson, one of the biggest multinationals in the world, is partnering with other companies to develop a vaccine. According to Reuters, both Johnson & Johnson and Moderna made a deal with the U.S. government to produce a huge amount of the vaccine when they became available. Also, Johnson & Johnson will be funding 1 billion dollars along with BARDA in the research and development of the COVID-19 vaccine and treatment. The company expects clinical trials by September and the first batches of the vaccine to be used by early 2021.

Also, the U.S. drug company Pfizer signed with BioNTech to co-develop a vaccine for the coronavirus. In the joint statement, both companies signed a letter of intent to distribute the vaccine outside China. The intention is to have clinical trials by late April.

Along with them, both Sanofi and Regeneron Pharmaceuticals are following the same path. They expanded a clinical trial of the drug Kevzara as a coronavirus treatment and already started in European countries such as Italy, Spain, France, and Russia. While Regeneron is leading trials in the United States, Sanofi is leading outside the U.S.

What Should We Aim For?

coronavirus stock market
Source: Shutterstock

With all the information available, there is room to invest in those companies whose stocks expecting a bigger return.

After reaching 4,645 NIS ($1,298) in mid-February, TEVA is now at the price of ₪ 3,634 ($1015,53). The chloroquine is hope against COVID-19 and may boost Teva’s stock in the next months.

CytoDyn stock skyrocketed this year with an increase of over 400% since January and may not have hit the roof. If they are right about the deadline and everything goes the way they plan, there is room for the stock to increase even more. This can also apply for Gildea (GILD) and Regeneron (REGN), that saw its stocks grow since the beginning of the pandemic.

coronavirus stock market
Growth of CYDY, GILD, and REGN since January. (Source: Reuters Finance)

There are also opportunities for stocks of Johnson & Johnson (JNJ), Pfizer (PFIZ) and Sanofi (SANO). All of them are being sold below the price they started the year with. If you follow the Warren Buffett investment strategy, this could be a huge moment to buy these stocks.

Conclusion

Besides all problems left by the pandemic in the stock market, the coronavirus pandemic also left the opportunity to hit the jackpot.

Several companies all around the world are investing in a treatment or a vaccine against the disease. This may be the case of Gilead and CytoDyn, that are already in clinical trials of their own treatments. Along with them is Teva, which is investing in chloroquine and is showing good results against the new coronavirus.

Also, companies are partnering to develop the solution in a faster way. Johnson & Johnson already made a deal with both Moderna and BARDA to not only develop a vaccine but also to be able to produce in huge quantities when it will be available. Pfizer is developing a vaccine along with BioNTech in the same way that Sanofi and Regeneron are partnering in doing a clinical trial of Kevzara in Europe and the U.S.

Although companies are the first thought when we think who will hit the jackpot in this pandemic, this may be also the case for a normal investor. When market opportunities are identified in this scenario, it is possible to buy undervalued stocks from these companies and profit when the treatment’s or the vaccine’s development is finished.

When using the I Know First AI-powered algorithm, is it possible to have the forecast and know the trend for these stocks. With this information, it is possible to enhance your portfolio and get better results in the stock market.


I Know First Can Help You

I Know First team has a new forecasting package: Coronavirus New Market Opportunities. We utilize our proprietary AI-powered predictive algorithm to uncover the most promising market opportunities. These opportunities may arise during these extraordinary times from various market sectors, both on the long and short sides.

This includes assets such as gold and relevant commodities, biotech companies’ stocks, pharmaceutical companies’ stocks, semiconductors, and technological sectors stocks and more. We see the growing market potential in the nearest future. Because of this, we recommend the Coronavirus stock market forecast, so your investment strategy does not lose this momentum.

Explore Stock Market Opportunities at Coronavirus Times!


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