Covid Vaccine Makers' Lucrative Altruism Comes to an End

Strategic Insights -

As the bat-flu outbreak is now two years past, the companies that helped re-open the locked-down economy have faced significant changes in fortune. While some of the world's largest vaccine makers failed to produce jabs that gained approval, six other drug-makers managed to succeed. Companies like Pfizer, AstraZeneca, Moderna, and Johnson & Johnson have become synonymous with vaccine success, seeing increases in value by at least a third in the two years since the pandemic began. Pfizer's market value stands at $305 billion, while AstraZeneca is now the UK's most valuable listed company in London, valued at $220 billion. Other companies like Moderna and Novavax have also seen substantial gains, despite being less familiar to the UK market. However, the vaccine stocks have peaked, and the pharma sector appears to be enjoying a renaissance.

Key Takeaways:

  • Pfizer's market value stands at $305 billion, up 74% since the outbreak.
  • AstraZeneca is now the UK's most valuable listed company in London, valued at $220 billion.
  • Moderna's stock price surged 750% in price to trade at $160.00 today.
  • Novavax's vaccine shot is less familiar to the UK market, but its stock price soared over 700% over the two-year period.
  • Johnson & Johnson saw a 34% increase in its market capitalisation, now valued at $479 billion.
  • The pharma sector as a whole has seen heightened investor demand since the start of the pandemic.
  • Shares in big pharma companies like GlaxoSmithKline, Sanofi, and Merck rose by 23%, 32%, and 18% respectively, but failed to outshine the vax stocks.
  • The vaccine stocks have peaked, with companies like Moderna and BioNtech seeing significant declines from their peaks.
  • Sanofi and J&J are camped near their summit valuations, while Merck's and Pfizer's prices are also close to their peaks.

Statistics:

  • Pfizer's market value is $305 billion.
  • AstraZeneca's market value is $220 billion.
  • Moderna's stock price surged 750% in price to trade at $160.00 today.
  • Novavax's stock price soared over 700% over the two-year period, with a market capitalisation of $4.4 billion.
  • Johnson & Johnson's market capitalisation increased by 34% to $479 billion.
  • Shares in GlaxoSmithKline rose by 23%, in Sanofi by 32%, and in Merck by 18%.
  • The pharma sector's total market capitalisation is $1.5 trillion.
  • Moderna and BioNtech peaked at $484 and $447 a share respectively on 9 August last year.
  • Novavax crashed 80% in the last 14 months.

Sources:

  • Bloomberg
  • Financial Times
  • The Wall Street Journal
  • Forbes
  • Statista
  • FactSet