What COVID-19 means for Healthcare Markets

Who Benefits from an Economy Dependent on a Public Health Crisis and More

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Source: The Economic Times
March 26th: Unemployment in the United States expected to rise

What about Healthcare Firms?

For the first time in decades, the economy appears to be completely dependent on a public health crisis. Pharmaceutical, biotechnology and healthcare insurance companies are globally increasing recruitment to combat COVID-19 at the earliest. According to LinkedIn’s Workforce Report, Healthcare companies were hiring at 35% higher than at January’s pace. The article states:

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Source: Glassdoor

Healthcare Market Performance Indicator

  • S&P 500® Index: Standard and Poor’s is one of the leading indicators and best single gauge of large-cap U.S. equities, covering approximately 80% of available market capitalization
  • S&P 500® Health Care Index: This index comprises those companies included in the S&P 500 that are classified as members of the GICS® health care sector
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S&P 500 Healthcare vs S&P 500: Image 1 — Month to Date return; Image 2–Three Year Annual Return

Pharmaceutical and Biotechnology Companies during COVID-19

Several pharmaceutical and biotechnology companies across the world have tied up with the public sector to address the outbreak of coronavirus. With most of the world on lockdown, here are a few companies working to find a cure according to BIO — the world’s largest trade association representing biotechnology companies.

  • Arcturus: Developing a COVID-19 candidate vaccine using STARR™ Technology
  • Gilead: Initiated two Phase 3 clinical studies to evaluate the safety and efficacy of remdesivir.
  • GeoVax: Using its GV-MVA-VLP vaccine platform to develop a vaccine for COVID-19.
  • Teladoc’s stock was observed to rise with an increased utilization of tele-health services with more stringent social distancing norms. The Trump administration waived laws that restrict tele-health services across the country to accommodate practicing medicine across state lines.
  • Roche shares increased incredibly after news that the U.S. FDA issued authorization for its COVID-19 test on an emergency basis. It currently has a strong P/E ratio of 18.89
  • a global slowdown
  • a pandemic-driven recession
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