Vaccines manufactured by three groups have been approved in the UK so far. They include:
AstraZeneca (LON 🙂 (NASDAQ 🙂 / Oxford University ;
BioNTech (NASDAQ 🙂 / Pfizer (NYSE :); and
Moderna (NASDAQ 🙂
They have all become household names to many people around the world. The vaccine developed by Johnson & Johnson (NYSE 🙂 is still pending approval in the UK.
In early 2020, before the pandemic began to dominate almost all aspects of life, Oil Major Royal Dutch Shell (LON 🙂 (NYSE 🙂 had the largest market capitalization on the, the world's leading stock index. UK
But last year the leadership position quickly moved to AstraZeneca – clearly a sign of the times. The pharma group is now in second place, behind the consumer goods giant Unilever (LON 🙂 (NYSE :). The AZN share has risen about 2.5% since the beginning of the year.
AstraZeneca Weekly Chart.
With that information, let's take a look at the Oxford Nanopore IPO, which has made headlines.
Oxford Nanopore
Founded in 2005 as a spin-off from Oxford University, biotech company Oxford Nanopore recently announced a potential IPO in the second half of 2021. Much to the delight of the UK investment management community the company chose London for the listing.
The biotech group has approximately 600 employees in the UK, US, Singapore and mainland China. As a DNA and RNA sequencing company, Oxford Nanopore has a single molecule detection system based on nanopore science that enables DNA / RNA sequencing. For example, the DNA sequencing device called MinION offers a simpler, faster and cheaper alternative to the work of large clinical laboratories.
In 2017, MinION was tested as part of the scientific research for a possible flight to Mars. Sarah L. Castro-Wallace of the Biomedical Research and Environmental Sciences Division, NASA Johnson Space Center, Houston, Texas and her colleagues emphasize:
“The duration of Mars missions is likely to range from 1.5 to three years … There is also a clear need for in-flight clinical diagnostic capability to ensure that any infections can be properly managed , including the delivery of targeted antimicrobials … [MinION] DNA and RNA sequences … To evaluate the performance of the MinION in a space environment, we tested it on board the International Space Station (ISS). [Results] demonstrated the feasibility of sequence analysis and microbial identification on board the ISS. "
In other words, the company's work was known to the scientific community before the pandemic.
But the emergence of new variants of the COVID-19 virus (i.e., known as the Kent, Brazilian, South African or Indian variant) has put Oxford Nanopore in the spotlight. Scientists in these and other countries have mapped the coronavirus so they can track its transmission and evolution.
Oxford Nanopore has so far raised funding from the IP Group (LON 🙂 as well as Tencent (OTC :), the Singaporean sovereign wealth fund GIC ] and technology company Abu Dhabi G42 . Institutional funds, including Schroders (LON 🙂 (OTC 🙂 and Odey Asse t Management have also invested in the company.
The amount raised has gone over £ 613 million (US $ 848 million). The founder and CEO, Dr. Gordon Sanghera, said:
“ An IPO is the start of the next phase of our journey. Accessing deeper, international pools of capital would support our ambitious growth plans, our ability to innovate and scale our manufacturing and commercial functions. "
Potential investors are thrilled, as Oxford Nanopore currently offers the only real-time analysis sequencing technology. In recent months it has also developed a fast and scalable COVID-19 test, LamPORE, to support extensive, high-precision testing in the UK. The company also holds more than 1,400 patents and numerous patent applications that could affect a wide variety of industries.
IP Group currently has a 15% stake in Oxford Nanopore, an amount currently valued at £ 340 million (US $ 470 million). Analysts expect the valuation to exceed £ 4 billion (US $ 5.53 billion) in the coming months.
Bottom Line
It will be several weeks before Oxford Nanopore becomes a public body. Therefore, it is still early to know how the stock price will fare. Three main points are especially important when looking at new drugs and vaccines:
Clinical issues (effectiveness and safety);
Regulatory issues (do national regulators approve the drug / vaccine?);
Commercial issues (successful production and distribution opportunities).
In the coming months, both the scientific community and investors will be waiting for exciting updates from Oxford Nanopores.
Those investors looking for other UK-headquartered pharmaceutical companies that play a vital role in the fight against the COVID-19 virus may be interested in researching two other FTSE 100 members, namely GlaxoSmithKline (LON 🙂 (NYSE 🙂 and Hikma Pharmaceuticals (LON 🙂 (OTC :).
With an enviable drug pipeline, GlaxoSmithKline has the sixth largest market capitalization on the UK index. Management says, the group is:
"… in collaboration with several organizations working on promising COVID-19 vaccines by providing access to our adjuvant technology. The use of an adjuvant is important in a pandemic situation where there is a high demand for a vaccine, as it allows more doses to be produced from fewer ingredients and therefore allows for scale manufacturing. "
The company Hikma Pharmaceuticals, which is on the generic drug market, has manufactured Remdesivir – Gilead Sciences & # 39; (NASDAQ 🙂 antiviral drug – under contract in Portugal. In October 2020, the United States Food and Drug Administration (FDA) approved Remdesivir for coronavirus treatment of hospital patients.
We must point out that the work of these pharmaceutical companies or other entrants will not end with COVID-19 in the future. According to a report from MarketsAndMarkets:
"The global vaccination market is expected to reach $ 58.4 billion by 2024, up from $ 41.7 billion in 2019, at a CAGR of 7.0% during the forecast period."
Finally, market participants who do not want to spend the entire capital on a single name may consider purchasing a thematic exchange-traded fund (ETF). Examples include:
ETFMG Treatments, Testing and Advancements ETF (NYSE 🙂
SPDR® S&P Biotech ETF (NYSE 🙂
VanEck Vectors Biotech ETF (NASDAQ 🙂
Virtus LifeSci Biotech Clinical Trials ETF (NYSE 🙂
