Bernstein analyst Ronnie Gall predicts that coronavirus vaccines will generate $ 40 billion in sales in 2021. What is particularly striking about this number is that the market did not exist until December.
Large markets create great opportunities for investors. But what are the best ways to take advantage of this particular opportunity? Here are three fantastic stocks of coronavirus that you can buy right now.
1. Johnson and Johnson
Johnson and Johnson (NYSE: JNJ) must announce the results of a follow-up study of his vaccine COVID-19, JNJ-78436735,, very soon. It is no exaggeration to say that this vaccine can change the game if it proves to be safe and highly effective. Unlike all other leading coronavirus vaccines, JNJ-78436735 requires only one dose.
What about J&J’s commitment to sell its COVID-19 vaccine at a price during the pandemic? Of course, this will mean that the health giant’s income will not increase in the near future, even if JNJ-78436735 is successful. However, the pandemic will not last forever. A single dose of vaccine could generate billions of dollars in sales for J&J over the next few years.
More importantly, JNJ-78436735 is not the main reason to consider buying shares in Johnson & Johnson. An even more compelling argument for investing in J&J is that it is the largest player in healthcare, one of the largest sectors with strong long-term growth prospects. The company also offers significant diversification in the healthcare sector as a leader in consumer healthcare, medical devices and pharmaceuticals.
Another really good reason to buy shares in Johnson & Johnson is its dividend. The company is Dividend King, an elite group of S&P 500 members who have increased their dividends for at least 50 consecutive years. For income investors looking for stability, there is simply no better stock of coronavirus vaccines than J&J.
When writing history books about the pandemic, Pfizer (NYSE: PFE) it will almost certainly be mentioned. The major drugmaker quickly moved into a partnership with German biotechnology BioNTech 09.30 NASDAQ: BNTX in early 2020, the two companies’ COVID-19 vaccine became the first to receive an emergency use permit in the United States
This vaccine, Comirnaty (formerly known as BNT162b2), could make $ 14 billion and maybe more this year. Pfizer will split sales to 50-50 with BioNTech. The partners are working to develop a lyophilized version that does not require ultra-cold storage, which can be ready later in 2021. This version could set the stage for Pfizer to generate huge recurring revenue with Comirnaty in the long run. Unlike Johnson & Johnson, Pfizer will benefit from its COVID-19 vaccine from the start.
Even without including the positive impact of Comirnaty, Pfizer expects to provide adjusted annual revenue growth of around 10% over the next few years, with annual revenue growth of around 6%. These are risk-adjusted forecasts, so growth rates do not depend on all Pfizer pipeline applicants.
Don’t ignore the Pfizer dividend. The company is not a royalty dividend like J&J, but its dividend is more than 4%.
Risk-minded investors are likely to like Johnson & Johnson and Pfizer. But what about more aggressive investors? Novavax 09.30 NASDAQ: NVAX it can only be the ticket.
Like J&J, Novavax expects to report the results of the late stage soon for its COVID-19 vaccine candidate. However, there is a catch: This late-stage study, which is being conducted in the UK, Novavax did not start its US late-stage study until the end of December, so it will be several months before results are obtained.
Still, Novavax could be a huge winner in the coronavirus vaccine market. Ronnie Gall of Bernstein estimates that biotechnology will earn $ 3.8 billion in sales this year. If right, Novavax’s market capitalization will jump much higher than the current level of about $ 8 billion.
Novavax has another promising candidate in the experimental NanoFlu flu vaccine. He has already sailed through late-stage testing. The company only needs to complete a batch sequence test to apply for US approval. With two potential blockbusters waiting in the wings, I think Novavax’s reward profile may make it the best stock of coronavirus for 2021.