In an era of intensified vaccine development, it would only make sense for vaccine production related stocks to also intensify and surge in value quickly as they receive an injection of pace. However this hasn’t been the case thus far for many stocks. One such potentially undervalued stock is that of British based pharmaceutical giant, GSK.
Britain in its revitalised efforts in the battle against Covid-19 has become the first country in the world to administer doses of a vaccine against the virus. It’s research institutions are amongst the best in the world and have worked in close partnership with corporate partners such as Pfizer and AstraZeneca in order to advance health solutions across the globe.
Curious then that powerhouse GSK has fallen behind in its race to become the leading manufacturer whilst companies such as German based BioNTech and American multinational Pfizer race ahead. One can only wonder what the future holds for the gigantic and coveted Brentford based GSK and its market cap.
The vaccine is likely to be needed for some time to come. A couple doses this year does not equate to lifetime immunity. The race to become the dominant player is almost over. But the battle to stay at the top is a long term slog. GSK are still developing their vaccine and with such rich history in Pharma, perhaps this stock is one to watch closely.
At the time of writing, GlaxoSmithKline Plc is listed on the FTSE at 1,413p well below its pre covid 52week high of 1,777p. This could have been higher had the company been more successful at this point in rolling out its vaccine which it is developing in partnership with French rival, Sanofi. However they have decided to delay release until later next year. This was after the company saw its results as effective in 18-49 year olds in generating an immune response but insufficient in older age groups.
The UK holds an order of 60million doses when the vaccine is ready to go. Certainly there is potential there for this stock to gain value once the company has sorts its research, and it is worth noting they haven’t let us down much in that field over the years.
Simon Bains
December 31, 2020 at 1:23 pm
Great article, thanks.