Do not let the constant explosion of your vaccine mislead you into thinking that coronavirus supplies are an old hat. Until the global case load drops to manageable levels, we still need new vaccinations, many diagnostic tests and as many therapeutic agents as we can get our hands on to treat patients with COVID-19 and prevent people from contracting the disease.
The catch? Competition for market share is increasing. So it’s a little harder to pick a coronavirus stock now than it was in 2020. Being the first product approved to buy does not mean it will reach the entire market. Investors need to focus on companies that make products that are tangibly better than the competition.
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1. Johnson & Johnson
While Johnson & Johnson (NYSE: JNJ) still working on its coronavirus vaccine candidate, it has one major advantage that the vaccines Pfizer (NYSE: PFE) and Modern (NASDAQ: MRNA) do not: it only takes one dose to bring about immunity. This means that it does not have to produce nearly as much to meet demand. This has the added benefit of facilitating the logistics of vaccine administration, as people only have to report to a clinic once, and clinics have to purchase fewer syringes and associated products than with competitive vaccinations. However, the candidate will have to clear his final phase of clinical trials and get the regulatory approval before investors can count on the payout.
The J&J vaccine will have another advantage over the competition: better storage and transport characteristics. While Pfizer’s vaccine requires transportation and storage in ultra-cold freezers, J & Js can be stored for up to 90 days at standard medical refrigerator temperatures. In such a refrigerator, Pfizer’s vaccine can stay only five days before it spoils. This means that J & J’s candidate is easier for smaller clinics to set up, which is likely to be an important factor in their purchasing decision. The caveat here is that everything I have said assumes that the candidate is just as effective as the others on the market. If it is not so good at preventing serious diseases, it will have a major disadvantage.
2. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) does not work on a vaccine, but its diagnostic tests make it a profitable coronavirus stock. Due to its strong lead in testing throughout the pandemic, Abbott’s U.S. revenue from diagnostic sales rose 61.4% in the third quarter compared to last year. In total, the company has eight different tests approved for sale, covering every conceivable coronavirus diagnostic niche. The latest quick test product is designed for home use and offers consumers cheap results without the use of complicated and expensive laboratory equipment.
Given the huge demand for testing, Abbott needs to continue to thrive, especially as it continues to innovate consumer testing solutions. In particular, the company’s NAVICA smartphone app to track test results is likely to be a major driver for consumers looking to test products in a growing field of competitors. Expect Abbott to continue to develop and release more sophisticated coronavirus diagnostic tests and highlight digital solutions such as NAVICA that add benefits such as traceability and third-party verification of diagnostic results.
3. Co-Diagnostics
Unlike Abbott or J&J, Co-diagnostics (NASDAQ: CODX) is a small capitalization that grows like a wildfire. This year, the company sold more than 10 million of its coronavirus molecular diagnostic tests and earned $ 21.8 million in the third quarter alone. But Co-Diagnostics is just getting started, and management expects performance to be even better next quarter.
Investors should expect two catalysts for the share price after the next earnings report. First, its new home saliva-based coronavirus diagnostic test was recently launched. Second, its joint venture in India began selling the company’s diagnostic test at the end of November, which could boost its revenue even more. Next year will also be exciting for investors. Co-Diagnostics is working on a new molecular test intended for use in research contexts to detect coronaviral mutations. Work is also underway on a new series of multiplex tests for research that detect influenza A, influenza B and coronavirus from the same sample. Stay tuned for the company’s next earnings report to see how much new revenue these projects are earning, and invest accordingly.