Business & Investment

Coronavirus vaccine can boost your wealth

As the country prepares to carry out 2 million vaccinations a week, it may be acceptable to think that investing in health care may be a wise move for now. But it’s true that last year’s tremendous scientific progress has spawned superstars from women and men in lab coats, such as Sara Gilbert of Oxford University and BioNTech founders Ugur Shahin and Özlem Turech. However, it has not always been successful. In the arms of those who have acquired into a large pharmaceutical business.

The sector performed outstandingly in the first half of 2020, but was sluggish in the second half, especially in the United Kingdom.

Lasmold, Research Director of Wealth Manager AJ Bell, said: In 2020 stock performance, the pharmaceutical and biotechnology sectors ranked 23rd out of the 39 sectors that make up the FTSE All-Share Index. Percentage drop.

Shake your hands: Small biotechnology companies, manufacturers, and even healthcare data companies that can take advantage of recent innovations are looking for smarter ways to benefit from healthcare.

“At a more global level, in 2020, healthcare was ranked fourth among the 11’super sectors’ that make up the S & P Global 1200 Index with a double-digit percentage increase.

“But again, healthcare lags behind in the second half, with the worst performance since July, with the exception of real estate.”

Investors look elsewhere to benefit from the fight to beat Covid-19, as AstraZeneca offers the vaccine at a low price and the success of Pfizer’s Covid vaccine has already been priced for its strain. is needed.

Recent innovations, manufacturers, and even smaller biotech companies that can piggyback on healthcare data companies are looking for smarter ways to benefit from healthcare.

British star behind the rollout

As the vaccine is deployed, there is good news for many companies involved in its supply. One such company is Oxford BioMedica, a UK-listed company that is an important part of the vaccine manufacturing chain developed by AstraZeneca.

Paul Juledan, founder of small business investor Amati, is a fan of the business and also has a patented way to modify, remove and insert genes using so-called “wrench virus” vectors. ..

Oxford BioMedica’s share price has more than doubled to nearly £ 10 since March last year, primarily due to its involvement in the Oxford Covid Vaccine.

Other UK beneficiaries include companies that manufacture and develop new Covid test kits, but the need for them is unlikely to disappear soon.

John Glencross is the CEO of Calculus Capital, a company that specializes in investing in early-stage companies. He is particularly excited about two UK companies, vaccine developer Scancell and Manchester-based Genedrive.

Scancell recently received over £ 40m in investment from US investor Red Mile, an early investor in vaccine star BioNtech. Glenn Close said: “The vaccine targets the ability of Covid virus spikes to bind to cells and a second” N “protein that induces a strong T cell response. Therefore, protection against new variants may be enhanced.

Genedrive has designed a PCR Point of Care Covid test that detects positive patients in about 15 minutes with a detection limit that meets the sensitivity requirements of the UK Medicines and Healthcare Products Regulatory Agency, he says. Both Scancell and Genedrive are listed on the London Stock Exchange. Scancell’s share price is trading at nearly 16p compared to 7p in early 2020. Genedrive’s share price rose from a pre-pandemic 9p low to 43p. This is a big hit for any investor.

Sadly, the UK’s ability to produce its own glass vials for vaccines seems to have evaporated in recent decades, so there is little opportunity to invest in this part of the vaccine supply chain. Those who want to enter the international business can consider Shot, which is listed on Germany, or Stevanato, which is listed on Italy.

Sector Benefits Beyond Pandemics

Experts believe that there are two other good reasons to be bullish on health care as an investment opportunity, as well as to benefit from the deployment of vaccination.

First, government spending on health could increase, and second, the equity market should support this sector for the foreseeable future. Government spending on health “is likely to remain one of the major trends in the healthcare sector in the future,” said Teodor Dilov, a fund analyst at Wealth Manager Interactive Investor.

Increased government spending is good news for the healthcare sector, especially with the tailwind of an aging population that requires more treatment and treatment, even as vaccination programs recede.

In addition, selective surgery bottlenecks need to occur. This means that even the demand for knee and hip replacement therapy will be strengthened.

Experts also believe that the innovation and speed of vaccine development is encouraging and that companies that can build on new scientific discoveries and ways of doing things will thrive. +++

Roderick Wong, manager of the RTW Venture Fund, said there was an “innovation outburst” that would only benefit the healthcare sector. He adds: We believe there are many areas of exciting and significant innovation, such as targeted oncology, gene therapy, and molecular diagnostics, especially when applied to cancer.

Glenn Close in calculus is excited about the potential of many small UK companies that have survived the crisis. He states: “One of the positive things that came out of the pandemic is the new interest in small UK biotechnology companies. They have some incredible things to do, whether it’s vaccine development or testing. Demonstrated the ability to quickly pivot to address science and challenges.

Jourdan proposes that investors closely monitor two parts of the healthcare sector: companies that bring artificial intelligence (AI) to healthcare data and gene-based healthcare. He states: ‘Applying AI to medical data and digitizing information is a growing area. Gene-based medicine is a major focus of healthcare.

Funding to replenish your healthcare dose

Many investors already have exposure to healthcare stocks in their portfolio. For example, anyone who owns a fund that tracks the performance of the FTSE 100 Index will be exposed to more than 10% of their health care.

More targeted healthcare funds include Exchange Traded Fund Xtrackers MSCI World Healthcare. This will give you access to 156 of the world’s largest healthcare companies. The annual fee is 0.25%.

If you need a Specialist Healthcare Fund run by an Expert Fund Manager, Polar Capital Global Healthcare and Axa Framlington Health are optional.

Polar’s fund holds significant shares in pharmaceutical giant Roche, insulin pump maker Medtronic, and pharmaceutical maker Sanofi. Axa’s top positions include vaccine makers Pfizer and AstraZeneca, Merck and Eli Lilly.

Investing in innovation … but be aware of the risks

There are risks for anyone who wants to be exposed to small businesses that specialize in biotechnology. Most biotech companies aren’t profitable and instead rely on funding rounds to expect their drugs to hit the market or be promising enough for their companies to be acquired by larger rivals. In reality, this strategy often fails, drugs are abandoned at all stages of clinical trials, and businesses struggle to get the funding they need. When it works, however, the rewards can be huge, but it’s best to rely on an investment fund with a diverse portfolio of healthcare stocks selected by experts.

Candidates include Investment Trust Worldwide Healthcare Investment Trust. Wealth Manager AJ Bell’s Ryan Hughes explains, “We offer a diverse portfolio of healthcare exposures, from leading medicines to biotechnology looking for cures for new diseases.”

Jason Hollands, director of Wealth Manager Tillney, wants to encourage investors who “want to dive into the deepest” to Cinkona and get in touch with early-stage healthcare companies.

He states: “This is a London Stock Exchange-listed investment firm that supports critical health-focused, normally unquoted companies from start-up to market.”

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Coronavirus vaccine can boost your wealth Coronavirus vaccine can boost your wealth

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