The Lemon Fool

Hi LFs, should AZN be a buy because of the oxford vaccine. Been reading that Moderna and AZ are both at similar stages in vacinne development. But Moderna shares have rocketed 65% in 3 months compared to a lacklustre 11% for AZN.

AstraZeneca is a huge company with fingers in hundreds of pies. Hence the covid vaccine represents only a small part of their business.

Moderna is a very small company. The vaccine is everything (or nothing) to them.

Gryff

Also Azn have stated that their vaccine activity is being done on a not for profit basis. Their p/e ratio makes one wonder whether that has been taken into consideration. Hopefully, it accurately reflects all the recent drug approvals.

Bouleversee wrote:Also Azn have stated that their vaccine activity is being done on a not for profit basis. Their p/e ratio makes one wonder whether that has been taken into consideration. Hopefully, it accurately reflects all the recent drug approvals.

Yes, I think there would be a lot of political pressure put on any drug company that comes up with a cure or vaccine to make the cost moderate. It would also be good PR for such a company to not gouge on prices.

That said, if I could pay a grand tomorrow to buy immunity from Covid and lead a normal life, I would do it in a New York minute.

Lootman wrote:Yes, I think there would be a lot of political pressure put on any drug company that comes up with a cure or vaccine to make the cost moderate. It would also be good PR for such a company to not gouge on prices.

That said, if I could pay a grand tomorrow to buy immunity from Covid and lead a normal life, I would do it in a New York minute.

But of course your grand immunity wouldn't get you a normal life while the country is still under semi-lockdown and other Covid restrictions. The way for any of us to lead a normal life is for everyone to get immunity (or at least the majority needed to reach herd immunity...)

Bouleversee wrote:Also Azn have stated that their vaccine activity is being done on a not for profit basis. Their p/e ratio makes one wonder whether that has been taken into consideration. Hopefully, it accurately reflects all the recent drug approvals.

There is a big difference between "Not for Profit" and "Not making a loss".

Overhead and cost recovery makes a big difference, compared with endless research into medicines which do not make the grade.

TJH

Agreed and it is good that their costs will be reimbursed by various others. Also good that their research seems to have paid off in a number of cases recently. I should be interested to know whether you think their present price is justified, however. I am debating whether to transfer my dealing account holding to my ISA, where I have another holding, before the ex-dividend date or just take the profit.