Is now really a good time to buy stocks? The market fluctuates throughout the year, and we are in the worst recession since the Great Depression. Moreover, the coronavirus pandemic is not over yet. On Tuesday alone, more than 73,000 new cases were reported in the United States, and COVID-19 caused nearly 1,000 deaths. Conversely, for some of the world’s largest pharmaceutical and biotechnology companies, there is increasing pressure to quickly develop and commercialize a safe and effective antiviral vaccine.
Having said that, it would be wrong for investors to focus only on current negative factors. In the long run, the market will survive-it has made up for every loss in history-and will continue to pay investors who buy stocks in companies that perform well.I think the two stocks worth buying right now are the pharmaceutical giants Pfizer (New York Stock Exchange: PFE) with AstraZeneca (Nasdaq: AZN). If you have $1,000 at your disposal, this is why both drugmakers can add so much to your product portfolio.
Pfizer has a potential catalyst
Pfizer and AstraZeneca are both front runners in the COVID-19 competition.Pfizer and its German partners Biotechnology It is currently conducting Phase 2/3 clinical trials for its candidate drug BNT162b2. Pfizer CEO Albert Burla said that the two companies will know whether their vaccine candidates are safe and effective before the end of the month. The company initiated a rolling submission of BNT162b2 to the European Medicines Agency (EMA) in early October.
This option will speed up the vaccine review process because it allows companies to submit some data to support marketing applications available in the market, rather than submitting all data at once. Pfizer and BioNTech have signed agreements with governments in several countries to provide millions of doses of BNT162b2, pending regulatory approval. These countries include the governments of the United Kingdom, the United States, Japan and Canada.
AstraZeneca suffered a standstill, but was almost ready to restart
AstraZeneca is also conducting late-stage clinical trials for its potential vaccine AZD1222. The company had to suspend the study in September because one of the participants had an unexplainable disease, but there was no reason to automatically assume that this event was caused by the candidate vaccine. Regulators recently allowed AstraZeneca to resume its clinical trials, and it has also begun rolling AZD1222 submissions within the European Union.
The market for COVID-19 vaccine drugs is actually the entire world. If Pfizer and AstraZeneca are among the first companies to launch candidates, enthusiastic investors can bid for the shares of the two companies next year. However, it is worth noting that AstraZeneca said it will not profit from its vaccines during the pandemic. At the same time, Pfizer plans to distribute profits (and costs) equally with BioNTech.
For these pharmaceutical giants, taking advantage of the COVID-19 vaccine market will be a big deal, but even if their coronavirus-related efforts fail, they still have a lot to do.
Let’s start with Pfizer, which decided last year to get rid of two underperforming business units.First of all, in August 2019, it and GlaxoSmithKline, To merge the consumer healthcare divisions of the two companies. The joint venture is called GSK Consumer Healthcare and Pfizer owns 32% of the shares.
Second, the drugmaker is splitting its generic drug division Upjohn into Mai Lan; The transaction should be completed before the end of this year. Why is Pfizer going through these changes? Burla said: “After all these actions are completed, Pfizer will become a smaller, more focused, science-based company that will focus on innovative pharmaceuticals. We believe that we will be in our pipeline and will be able to push the needle The position of development is even more significant in terms of our long-term growth prospects.”
Pfizer’s biopharmaceutical business continued to perform well. It has several blockbuster drugs, including the anticoagulant Eliquis and the anticancer drug Ibrance. In the second quarter ended June 30, Eliquis’ sales increased by 17% year-on-year to $1.27 billion, while revenue from Ibrance increased by 7% to $1.34 billion. The company’s sales of other drugs have grown rapidly. In the second quarter, its biopharmaceutical business revenue increased by 4% year-on-year to $9.8 billion.
Please note that the company’s total revenue fell by 11% to $11.8 billion, mainly due to the decline in Upjohn’s sales. Pfizer has also conducted more than 50 clinical trials to increase its rich drug lineup. After Up-Upjohn, the company should be in a good position to provide considerable financial performance.
Investors can also look forward to the future of AstraZeneca. The company’s best-selling products include the anticancer drugs Tagrisso, Imfinzi and Lynparza. Tagrisso’s second-quarter sales (as of June 30) increased by 32% year-on-year to US$1 billion. Imfinzi’s revenue was US$492 million and Lynparza’s revenue was US$419 million, an increase of 46% and 48% year-on-year respectively.
These are just the tip of the iceberg for this British drugmaker. Total revenue in the second quarter increased by 8% over the second quarter of last year. AstraZeneca also has 166 clinical projects and will continue to increase revenue sources for its already rich product line.
Why consider buying
There are many companies working on COVID-19 vaccines, but many of them are either clinical-stage biotechnology with no products on the market, or are far behind the leader of the competition (or neither). Neither Pfizer nor AstraZeneca fall into these two categories. Although Pfizer will share profits with its partners, in view of global market opportunities, Pfizer’s revenue from some of its transactions will still have a good impact on its top line.
AstraZeneca will not benefit from its COVID-19 vaccine during the outbreak, but once the pandemic is declared over, the disease will not disappear, and the vaccine will still be needed thereafter. In addition to their COVID-19 efforts, both companies are mature pharmaceutical giants with a wide range of products that can generate billions of dollars in sales each year. These factors make Pfizer and AstraZeneca worth buying, especially for venture investors who hate to seek stocks in companies producing COVID-19 vaccines.