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Summary
- President Biden’s new drug policy gets huge support from lawmakers, cutting across political lines.
- The policy allows the export of essential medicines and raw materials to friendly countries.
- US drugmakers are expected to receive a huge windfall from new orders, especially from the developing world like India.
The Biden administration has recently decided to extend all help to friendly nations reeling under the effect of the covid-19 pandemic, which includes providing essential medicines and raw material for manufacturing drugs, as concerns over the supply of drugs seen in the US early this year eased.
While this landmark decision has received overwhelming support from the lawmakers, cutting across the political lines, the US drugmakers are also set to get a huge boost from the development.
Most US companies have so far been catering to the domestic demand, but this could change and result in a huge windfall of income from new orders, mainly from the developing world like India.
Although the businesses of major American pharmaceutical companies have skyrocketed during the pandemic, others are also set to make a huge leap into the future following the latest decision, which includes exporting medicines for various other ailments, besides covid.
Here are five US pharmaceutical companies that may benefit from President Biden’s offer of help to fight the deadly covid virus.
Pic Credit: Pixabay.
Novavax Inc (NASDAQ:NVAX)
This Maryland-headquartered biotechnology company is one of the leading manufacturers of life-saving drugs for various infectious diseases, including covid. Novavax had last week published the clinical trial results of its new malaria vaccine called Matrix-M, jointly developed with the Serum Institute of India. The company is in talks to decide when to send the covid vaccines to other nations.
Novavax stocks were trading at US$242.9475 per share at 12:14 pm ET on Wednesday, April 28. The stocks gained nearly 40% in value in the past 30 days. The company’s latest malaria drug is expected to give a huge sales boost, given that the disease continues to be a major cause of death especially in Asia and Africa, where an estimated 400,000 people have died from the infection.
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Vaxart Inc (NASDAQ:VXRT)
Vaxart, headquartered in South San Francisco, California, is another important biotechnology company in the US. It is currently developing a covid pill following a nationwide survey, which showed that 7 out of 10 Americans would prefer a covid pill rather than an injection.
The second phase of the pill study is expected to begin in the second quarter of 2021, the company said while announcing its fourth-quarter and annual results on February 25, 2021. The company had reported a net loss of US$13.9 million in Q4 of 2020, compared to US$6.4 million in the same period of 2019. Its total revenue was US$356,000, compared to US$3.9 million in the same period of 2019.
Vaxart shares were among the most active stocks on NASDAQ, with an average 10-day trading volume of 25 million. The stocks were trading at US$8.265 per share on Wednesday, April 28. In the last 30 days, the stocks gained more than 46% in value.
Mind Medicine Inc. (NASDAQ:MNMD)
This Toronto-based psychedelic drug company debuted on NASDAQ on Tuesday, April 27. It is one of the leading manufacturers of psychedelic drugs containing components such as LSD, MDMA, DMT, and 18-MC, etc. The US listing has taken its market capitalization to US$1 billion.
The company provides various therapeutic and medicinal treatments for people suffering from problems like anxiety, addiction, mental illness, and opioid dependence.
MindMed’s business is set to grow, given the favorable changes in the law, which decriminalized the use of psychedelic substances, in recent times. As such, the psychedelic medicine industry is set to witness a huge transformation in North America, both in terms of scale and profitability.
Mind Medicine stocks were trading at US$4.70 per share at 1:09 pm ET on Wednesday, April 28, which was an increase of 16.92% from the previous close. The stock had closed nearly 30% lower on the first day of trading on NASDAQ at US$4.02.
Pic Credit; Pixabay.
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Akari Therapeutics PLC (NASDAQ:AKTS)
This New York-headquartered biopharmaceutical company, which has offices in London and other parts of Europe, is one of the leading manufacturers of various chronic diseases. One of its key products is Coversin, also called nomacopan.
The company has recently initiated a phase-III study of nomacopan for the treatment of bullous pemphigoid (BP), a skin disease often observed in elderly people. Bullous pemphigoid can be severe in the advanced stages. The study has been approved by the US Food and Drug Administration (FDA). According to an estimate, some 120,000 people in the US are currently affected by the disease.
The stocks of Akari Therapeutics (NASDAQ:AKTS) were trading at US$2.30 per share at 1:33 pm ET on Wednesday, April 28. The stock has been trading flat over the past month, with a few significant spikes in intraday trade.
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Boston Scientific Corporation (NYSE:BSX)
This Massachusetts-headquartered company is one of the leading manufacturers of medical devices, which are supplied to different parts of the globe. According to the company, its healthcare solutions have significantly reduced the healthcare costs of scores of its patrons.
In its first-quarter results for 2021, released on Wednesday, April 28, the company said its net sales rose 8.2% to US$2.752 billion. It reported a net GAAP income of US$327 million during the period compared to US$11 million in the year-ago period. Presenting the report, Boston Scientific CEO Mike Mahoney said that the growth reflects the company’s dogged pursuit of innovative solutions.
The stocks of Boston Scientific were trading at US$44.15 per share at 1:49 pm ET on Wednesday, which was an increase of 4.10% from the previous close. The stocks jumped over 14% in the last month.
