AstraZeneca has said it hopes to start distributing Oxford University’s Covid-19 vaccine by the end of 2020, says Samuel Lovett in The Independent. Preliminary trial results revealed that it induces a “strong immune response within humans” and “appears to be safe”. More detailed results for this vaccine are expected to be available between September and November. Meanwhile, the company has struck deals with the UK, France, Germany and the US to deliver supplies of the vaccine, and will start manufacturing it even before trials finish, with the aim of making two billion doses.
The results may be positive enough to continue with trials, but they “weren’t enough to convince the market”, says Bloomberg. AstraZeneca’s shares fell back early this week. Good news had been “widely expected”, while there are also concerns over whether its vaccine can match the progress seen at rival companies such as Pfizer, BioNtech SE and Moderna. The decision to prioritise a two-dose regime (rather than a single injection) and the fact that the end-of-year deadline is later than the previous promise of a September delivery are also “dampening” some of the enthusiasm.
Hedging bets
In a reminder that AstraZeneca is not the only company close to bringing a vaccine to market, even the British government, one of the biggest backers of Oxford University’s research, now seems to be hedging its bets by working with rivals, says The Daily Telegraph. Having previously agreed to buy 100 million doses of the AstraZeneca vaccine, it has signed additional deals to “secure 90 million doses of two possible Covid-19 vaccines from the Pfizer and BioNTech alliance and French group Valneva”. This could rise to 140 million doses if the Valneva vaccine proves to be “effective and suitable”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Betting on vaccines from more than one company is an approach investors should adopt too, says Lex in the Financial Times. Formerly considered a “neglected Cinderella industry”, vaccines have “never been so hot”. But there are 170 Covid-19 vaccines in development, so many “also-rans” will inevitably suffer from “irrevocable losses”. Investors should back different approaches to “spread risk”. In any case, the need for “multiple success stories” means that this “is not a winner-takes-all market”, with rewards likely to be spread across multiple firms.
Investors should also note that even if they do manage to bet on a winner, “sales and profits might not flow as much as hoped”, says Charley Grant in The Wall Street Journal. Given that the drug industry will want to avoid “heavy scrutiny” over its pricing practices during the upcoming US election, it will be under pressure to price a vaccine “modestly”. More broadly, the “euphoric trading” that has seen the share price of biotech companies such as Moderna triple means that “caution is always warranted”.
-
8 of the best houses for sale for around £500,000Some of the best houses for sale for around £500,000 – from a 19th-century stone farm cottage in North Yorkshire and a two-bedroom apartment in Edinburgh’s New Town to a converted Methodist chapel in Norfolk
-
What will the unravelling of US-China trade mean for the economy?What will a US-China decoupling mean for the global economy?
-
Two ways to tap into monopoly profits from airportsMost investors can’t get their hands on airports. Here are two ways you can
-
Fat profits: should you invest in weight-loss drugs?The latest weight-loss treatments could transform public health and the world economy. Should you invest?
-
How investors could profit from Ramsden Holdings' four-part growth strategyRamsdens Holdings offers a diversified set of financial and retail services and a juicy yield, says Dr Michael Tubbs
-
How to invest in the booming insurance marketThe insurance sector is experiencing rapid growth after years of stagnation. Smart investors should buy in now, says Rupert Hargreaves
-
Precision-engineered profits: How to invest in genomicsDevelopments in genomics are enabling the rise of personalised medicine, with therapies tailored specifically for individuals. Smart investors should buy in now, says Matthew Partridge
-
Out of America's shadow: Why Trump's tariff chaos may be good for non-US stocksOpinion Upending global investment and trade could benefit other countries at the expense of the US market, says Cris Sholto Heaton
-
BP's 'long, painful decline' – and why next year could be even tougherOpinion Long-suffering shareholders in oil giant BP have been pushing for change. It won’t come soon enough, says Matthew Lynn
-
Investment trusts tap the profits in exotic and obscure global marketsOpinion Peter Walls, manager of the Unicorn Mastertrust fund, highlights three investment trusts as he shares where he'd put his money
