The COVID-19 has indeed created a lot of fear, cracked up a lot of economy, creating hyper inflation from government stimulus, but it also add into a potential business worth USD 936 billion annually!!!
Yes, you read it right, it will not be a
one off event, but rather a annually / seasonal vaccine that will
require human to spike up immunity defense against the virus.
According to BioNTech, PFIZER, SHANGHAI FOSUN partnership, this coronavirus vaccine shot will be needed seasonally. The virus is expected to be here to stay, hence annual vaccination is required to spike up human immunization against the virus.
Based on the global population of 7.8
billion people, each dose costing USD 60, and with 2 dose vaccination,
this is equivalent to USD 936 billion annually!!!!
Pharmaceutical companies are going to make the heist, and that is for sure!
What can you do as a Malaysian investor in order to capitalize on this opportunity?
Luckily for our minister, the Malaysian counterpart had put in intention that the vaccine will not be imported as a fully finished product, but to be import as a partly finished, with the end bottling process to be finished in Malaysia pharmaceutical companies which are capable of handling it.
If you do not understand, this is like buying a CKD version of BMW or MERCEDES instead of buying a CBU version. This will create job opportunity for Malaysian, which is beneficial for the nation.
Currently, 2 most suitable pharmaceutical for this bottling process is Dpharma and Pharma.
While both are good, I will prefer Pharma due to
1. Government supply contract to government hospital
2. Established supply chain, logistic and network
3. Lower share outstanding compared to Dpharma, hence capital gain are higher due to less dilution of profit
Global pharmaceutical company are going fast and rushing into the vaccine.
Time line expected to see it at Q4, October 2020..
Just like Glove.. Since the detection of
coronavirus, Glove are muted for 4 months from December until April...
After that, all hell break lose..
Pharma will be the same.. Now it is muted at this level around RM 4.00..
But when the vaccine comes, it will not be RM 4.00, and you will have to risk chasing higher and higher and roller coaster...
Invest now or chase later? That is your decision to make.
https://klse.i3investor.com/blogs/targetinvest/2020-08-03-story-h1511499819-Coronavirus_covid_19_created_a_vaccine_business_worth_USD936_billion_ye.jsp
https://klse.i3investor.com/blogs/targetinvest/2020-08-03-story-h1511499819-Coronavirus_covid_19_created_a_vaccine_business_worth_USD936_billion_ye.jsp