Goodwill Investor Education Eagle’s Eyes – Stock Market Review.

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Pharma companies involved in rolling out Covid-19 treatments face ESG implications.

Investors beware-” An early bird catches the worm” !

At last the Cat is out of the bag!  Yes, Vaccine for Covid ‘ 19 is making headway!

ET Bureau

Now it looks like for certain that the entire economic, social and political environment is going to be determined by the deadly virus and its implications. This has emerged as the new normal which is unprecedented in the world of mankind.  The fulcrum of the entire activity from farm sector to Industrial and human activity unfortunately falls on the hope of a remedy for the Virus. In spite of so much of advancement in science and technology, the scientists and others have been proved to be helpless and ineffective in combating the unseen enemy – micro organism in the guise of virus which gulps the life of human beings in bunches across the world, for its insatiable hunger and thirst. What a tragedy it is !

The market is flush with a lot of news about the new vaccine being development which is perceived as the world’s first corona virus vaccine to be launched in mid August although U.K’s  Oxford University announced its trial first.Russia has fast tracked a vaccine which has been successful in its early phases. They have fast tracked its development.” says ICMR.  But Moody’s Investor Services said in a report last week that the ongoing Covid-19 vaccine development globally comes with both positives as well as negatives for pharma companies.

Pharmaceutical companies rolling out drugs (treatment) and vaccines (cure) for the Corona Virus  pandemic are facing new opportunities as well as risks. For one, they have to face the implications of ESG (Environmental, Social and Governance) compliance, an important criterion of investment currently, which can also influence their performance on the Street. The stakeholders are waiting for the quick and golden break as that would turn the wheels of economic and social development to positivity. The patients, doctors, hospitals, governments, global health authorities, the Pharma companies and  all will be benefited. But the crucial and challenging issues would be regarding the pricing, availability, affordability, storage, efficacy and distribution on time through logistics support.

Several companies, such as Glenmark, Cipla, Hetero Drugs and Biocon  are rolling out various drugs to treat mild to severe cases of Covid-19 infections. In the Indian context, the report’s observations are applicable to companies launching drugs to treat Covid-19 positive patients as well as those working to roll out a vaccine.. Bharat Biotech, Serum Institute and Cadila Healthcare  are ahead in the race to usher in Covid-19 vaccines – they are currently conducting human trials. These companies face different ESG implications. Of course criticisms are pouring in abundance on poor , hurried testing and sampling protocols questioning the veracity and credibility of the proposed drug.
While many Indian Pharma companies are on this onerous task which would eventually reap huge benefits by way of revenue, .companies will have to balance the interest of shareholders (read as Pharma Companies)with that of other stakeholders, while upholding scientific rigor during research of a vaccine or drug for the pandemic and make the drug affordable, equitable and availability on  time.

So watch those Pharma counters which would launch the vaccine early,  for  your investments and reap huge benefits in the short term at least. A great opportunity awaits  the investors!

The adage “Early bird catches the worm” might become true and real soon!

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