Pharmaceutical companies across the globe are rushing to develop a treatment or vaccine to counter the fast-spreading coronavirus that has cause economies around the world to stall. Along with medical researchers, not-for-profit organizations and public health authorities, several medical companies are developing innovative solutions to fight the deadly virus.
According to analysts, these new technologies can be a turning point in the war against the new threat, and could even help drive the stock market’s recovery. And in the case of Abbott Labs, Johnson & Johnson and Gilead Sciences – the efforts of these companies towards curbing the health crisis that has gripped the globe have put their stocks on the forefront of investors’ minds in recent weeks.
US-based Abbott is a key firm fighting against the novel coronavirus disease after it received emergency use authorization from the Food and Drug Administration for a new test that can provide results in as little as five minutes.
With sales already soaring for one of Abbott’s most important growth drivers, the company generated revenue of close to $2bn, up 70% year-on-year. Abbott Labs, based in Illinois, also continues to enjoy strong momentum for several other products in its lineup with its shares of Abbott Laboratories registering a 4.6% in one week.
Gilead Sciences is another stock that is benefiting from the company’s active role in developing an effective treatment for the new coronavirus. Its latest drug is in late-stage clinical studies but demand is already so high that the company had to stop accepting new requests for Remdesivir with a few exceptions. This caused the company’s stock to move -1.54% from the previous trading session, closing at $74.76.
Johnson & Johnson will start testing of vaccines in humans as early as September, which means doses of the first vaccine against coronavirus could be available under Emergency Use Authorization (EUA) in early 2021 if testing goes well. After the pharmaceutical giant significantly expanded its partnership with the Biomedical Advanced Research and Development Authority (BARDA), it went on to secure a $1bn deal with the US government for vaccine’s development and clinical testing. The news of the drugmaker’s deal caused J&J’s shares to J&J to gain 8% in Monday’s trading session.
Buying individual shares is always a risk, particularly when it comes to new technology and medicines, but these are a few stocks larger funds are buying.