The forecasts suggest that if the coronavirus outbreak continues to grow, some companies around the world could further improve their sales and the value of their shares on the stock markets.
These include, of course, companies that manufacture vaccines, disinfectant products, and masks. And within that group, the shares of pharmaceutical and biotechnology companies that are doing clinical trials to develop a specific vaccine against the new coronavirus have skyrocketed.
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Companies that have benefited indirectly from the spread of the coronavirus
Inovio Pharmaceuticals’ shares increased after the company announced that it would begin clinical trials of a vaccine in humans, next month in the U.S. The company’s value has more than doubled. The other competitors are Moderna, Novavax, Gilead, AIM ImmunoTech and Vir Biotechnology.
But there are other companies that have benefited indirectly from the spread of the coronavirus, such as those dedicated to providing the service of teleconferencing, online education, and entertainment, since some countries, such as Japan and Italy, have closed schools. Some companies, such as Google and Twitter, have asked their employees to work remotely.
In different parts of the world, people are choosing to avoid public places, as the number of infected cases (more than100,000 worldwide) and deaths (more than 4,000) increases, according to the latest report from the World Health Organization.
Precisely to account for this new reality, the investment company MKM Partners created a “Stay at Home Index,” whose objective is to follow the trajectory of companies that have benefited from the spread of the coronavirus.
Companies values more than doubled since the beginning of the epidemic
However, even the “winning” companies with the health crisis are not exempt from sudden ups and downs, as events evolve minute by minute. Not even the Federal Reserve’s (U.S. central bank) half-point cut in interest rates on Tuesday, March 10th, managed to significantly reverse investors’ pessimistic outlook. Amid the uncertainty, the following is a list of companies that have shown a positive trend.
Inovio: the value of its actions has more than doubled since the beginning of the epidemic. Its vaccine, called INO-4800, was developed using the virus’ DNA instead of the traditional method that works based on experiments with inactivated viruses.
Moderna’s shares went up 42% when the company announced the shipment of an experimental coronavirus vaccine to the U.S. National Institute of Allergy and Infectious Diseases for clinical trials in humans.
When Novavax reported on the progress of its research for a vaccine, a few weeks ago, its shares immediately went up 20%.
Regeneron Pharmaceuticals, dedicated to the development of a treatment for the coronavirus, was one of the companies in the S&P 500 Wall Street index that had a 10% increase in its stock price last week, while the rest of the stocks fell sharply in what was the worst week for the global markets since the 2008 crisis.
Investors are betting on companies that develop vaccines and services for those who do not want to leave their homes. In a report, the investment firm MKM Partners said it is paying attention to those products or companies that “could potentially benefit in a world of quarantined individuals.”
Hand sanitizer sales soar
The demand for hand disinfectant is increasing in different parts of the world. According to data released on Tuesday, March 10th, by market research firm Kantar, sales of hand sanitizers in the UK recorded a 255% increase in February, compared to the same month last year.
Some pharmacy chains in the country have even implemented a sales limit of two hand sanitizers per purchase. In the U.S., the sales of these products increased by more than 70% in February, according to a report published by the consulting firm Nielsen.
Asian consumers have also been stockpiling personal hygiene products in the wake of the outbreak. The actions of the company 3M, which manufactures masks among other products, have been erratic, despite the fact that the U.S. government announced a new contract with the company.
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First published in EL UNIVERSO, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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