As companies demonstrate progress in developing coronavirus vaccines, the Healthcare and Biotechnology sectors are poised for significant growth. Investors should consider targeted investments in specific sectors, such as Healthcare ETFs and Biotechnology ETFs.

Currently, the number of coronavirus infections continues to rise unabated, with the global total surpassing 16 million cases, and over 600,000 deaths reported worldwide. Many countries are still implementing strict measures to control the movement of people, significantly impacting the daily lives of citizens and contributing to economic contraction.

To restore confidence and allow governments to permit economic activities to return to normal, as well as for citizens to feel safe resuming their lives, it may take time until an effective vaccine can be widely distributed. Researchers are currently working diligently to develop vaccines as quickly as possible. However, vaccine development is quite complex to ensure sufficient safety, as it must be produced and distributed to millions of people.

Thus, the vaccine testing process must involve several stages, which can be divided as follows:

Pre-Clinic stage of testing: This involves administering the vaccine to animals to observe whether it stimulates an immune response.

Phase 1 of Clinical Trials: The vaccine is given to a small group of people to test immune response at various doses and to identify potential side effects.

Phase 2 of Clinical Trials: The vaccine is tested on a larger group of healthy volunteers, typically several hundred, allowing scientists to learn more about safety and the correct dosage.

Phase 3 of Clinical Trials: The vaccine is administered to thousands of people to confirm safety, side effects, and efficacy. This phase compares results between those who receive the vaccine and those who receive a placebo, ensuring that any differences between the two groups are due to the vaccine. Researchers usually follow participants in Phase 3 for an extended period to monitor long-term safety and efficacy, a process sometimes referred to as Phase 4 clinical trials.

If Phase 3 clinical trials are successful, researchers will seek approval from regulatory agencies worldwide to manufacture and distribute the vaccine. Even after the vaccine begins commercial distribution, safety and efficacy monitoring will continue.

According to the World Health Organization, over 140 companies worldwide are currently researching and testing vaccines against the coronavirus. Notable companies expected to produce vaccines early include Moderna and Novavax from the United States, AstraZeneca from the UK, BioNtech from Germany (developed in collaboration with Pfizer from the US), the Murdoch Institute from Australia, and Chinese companies such as Sinopharm, Sinovac, and CanSino Biologics. These companies are leading the way in testing vaccines in Phases 2 and 3, with hopes of developing a vaccine by early 2021.

As mentioned above, the Healthcare and Biotechnology sectors have high growth potential due to vaccine development. Investors interested in benefiting from advancements in coronavirus vaccine testing can consider investing through ETFs (Exchange Traded Funds) that specifically target these sectors, such as Healthcare ETFs and Biotechnology ETFs.

For example, Healthcare ETFs have approximately 5.24% investment in Pfizer, while Biotechnology ETFs have about 3.06% in Moderna. Comparing returns this year (from January 1 to July 27), Healthcare ETFs yielded approximately 3.67%, and Biotechnology ETFs yielded 13.54%, both outperforming the S&P 500 index, which returned 0.14%.

Recently, as companies have shown progress in vaccine development, they have received funding support for research and advance purchase guarantees from governments, enhancing their vaccine development potential. With global demand for vaccines high, no single company can meet the entire demand.

Therefore, any company that successfully develops a vaccine, regardless of speed, will likely receive continuous orders, which is expected to boost investor confidence in the future performance of these companies.

However, risks must be monitored, as the urgency to develop a vaccine in a short timeframe compared to the historical development period of over 10 years increases the likelihood of failure. There is also the risk that the vaccine may be harmful to users or insufficiently effective. Additionally, political risks, such as price control policies, may arise.

Investment carries risks; investors should always research before investing. However, not investing at all can be a greater risk.

SOURCE: www.bangkokbiznews.com