Governments and the media are reacting fearfully to the rapid spread of Omicron. Fortunately, the mutations increased the effectiveness of the virus’s spread but weakened its severity. This will have an impact on drug makers and their sales of Covid vaccines and antivirals.
The Omicron variant will reach a person’s airways. Conversely, Delta and the deadlier variants infected the host’s lungs. As scientists study Omicron, they may conclude that the virus enhances immunity. The hybrid vaccination from the jab and Omicron may end the pandemic. To protect the vulnerable population, countries still need a vaccine program. Expect companies like Moderna (MRNA), BioNTech (BNTX), and Pfizer (PFE) to post steady revenue growth from Covid vaccine sales.
Merck (MRK) and Pfizer (PFE) have an approved antiviral pill that will prevent people from developing severe complications from the Delta variant. Hospitals and doctors will need an ongoing inventory of the pill. Both firms will benefit from strong initial sales of the pill. As the year progresses, investors need to watch the infection and hospitalization rates. If they remain high, sales for the antiviral will increase.
Investors should consider Merck, Moderna, BioNTech, and Pfizer. Recent approvals for Novavax (NVAX) may lift that stock, too.
