Why Are Biotech Stocks Important?
With most of the world on lockdown due to the coronavirus, people have been looking for biotech stocks to buy. The biotech industry consists of companies creating medicines and new technologies to help the pharmaceutical industry.
Some of these biotech stocks have seen a spike in their share price due to them developing things to help combat coronavirus. For example, these items consist of as face masks, vaccine trials, and other medical equipment. One biotech stock to watch, Pfizer Inc. (PFE Stock Report), has continued to rise in share price over the last month.
Biotech Stocks To Buy Or Sell: Pfizer Inc.
Pfizer Inc. is a company that is geared toward creating medicine and vaccines for various types of illnesses in the medical field. They were founded in 1849 and as of now is partially owned by GlaxoSmithKline (GSK Stock Report), one of the largest UK based pharmaceutical companies. In just 2019 alone, Pfizer reported that over 214,000 patients had received their treatments. Out of those patients, most of those prescriptions came at a significant discount or at zero cost.
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You may now be wondering how they are relevant, and we are going to get to that now. In just the last month, Pfizer Inc. has gone from trading around $33 to now trading above $38 per share. This is a total gain of almost 12% which is significant in the current trading climate.
Pfizer Has Become a Coronavirus Stock
On Tuesday, May 5th, Pfizer came out with a report stating that it’s working on a tentative vaccine in an attempt to fight the coronavirus. This is a collaborative effort with BioNTech, a German pharmaceutical company that has a possible vaccination they’re calling BNT162. Currently, they have begun conducting tests on humans that have COVID-19.
Pfizer has also gone on record saying they want to make millions of vaccines in the remainder of 2020 to treat people who have been infected by this pandemic. The ultimate goal is to finish the vaccine and distribute it all over the world to those in need. With this report, Pfizer’s stock has risen $1 just on speculation overnight. With Pfizer as only one of eight companies to test vaccines on humans, they remain a promising biotech stock to watch for the future.
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Just like many other stocks, Pfizer has had its ups and downs in the market. However, as of now it has found a new footing inside of its niche because of the coronavirus. If these coronavirus tests are successful, this could result in Pfizer producing more revenue.
As the virus continues to impact the world, it’s only going to create more room for biotech companies to step up to the plate and take action. So when you think about investing in a company such as Pfizer, make sure you watch the news and financials, and do your research before investing.