Vaccine is a biological preparation which is made from any weakened form of microorganism that causes disease. When it’s injected, the body develops certain mechanisms to prevent any disease caused by the same but stronger form of viruses. Vaccines are essential to prevent Diphtheria, Polio, Measles, Tetanus, Influenza, Hepatitis, the list goes on. As the coronavirus has claimed more than 2.2 million lives already, world’s leading vaccine makers are in a rush to follow up with a solution.
As of January 2021, 69 vaccines are being developed or are in the stage where they could be administered. At least 26 are in phase three trials whereas the rest are in phase one or two. So far, nine vaccines are already being used by at least one authority. RNA vaccines like Pfizer or Moderna, inactivated vaccines like CoronaVac, Viral vector vaccines like Sputnik 5 are a few names making the rounds.
As the solution to ease all the problems caused by the virus, vaccines are now the center of politics and haggle and disinformation campaigns around the world. Developed countries, for example, did not wait to use their technological and financial upper hand in vaccine politics. Though the developed world represents barely 15% of the global population, they have already more than half of pre-sold vaccines. On the other hand, vaccine companies along with global trade are coming back to life, as the solution of the pandemic is at the doors.
VACCINE SHARE IN THE WORLD MARKET
The stock market share of vaccine makers has skyrocketed understandably. Pfizer registered a 9% climb after it showed a 90% effectiveness of its vaccine. The global vaccine market was USD 37 billion in 2019. Many pharmaceutical companies are working extensively in vaccine research. The COVID-19 pandemic has created tremendous government and privately funded efforts to strengthen the vaccine industry, which will reach 57 billion USD by the end of 2025. Big names are holding a large portion of the vaccine market share. Investors are also happy as the more vaccines are injected, the bigger the market share grows. In the UK and the USA, the Pfizer-BioNTech vaccine has been injected since December 8 and 14 respectively.
Since November, vaccines have become a prized commodity that everyone wants to get a hand on. Trillions of dollars have been invested by vaccine producers. Just the news of vaccine finalization has injected more than one trillion dollars into the US stock market alone. Stocks of Moderna have risen by 376%. Biotech has risen by more than 150%. Novavax is also experiencing a dream run as their stocks saw a whopping upsurge: 2,840%. Without a vaccine, the world economy may lose 3.4% trillion USD a year, hence the stock market price of vaccine companies is on a tremendous run.
VACCINE IMPACT ON THE WORLD MARKET
Vaccines have created a new surge for hotels, airlines, construction firms, energy firms, and tourism sectors. Some sectors saw a 40% percent resurge worldwide, for example, British aero-engine maker Rolls Royce. On the other hand, those who have immensely benefited from the virus impact, are now experiencing a rapidly declining business. Zoom was widely used as means of office-level communication and business meetings. Zoom saw a 17% drop in the US alone. The same can be said about grocery and food delivery firms..
In Europe, compared to China and other newly industrialized countries, the resurgence of business was comparatively cooler. The second lockdown and various other restrictions are still there. However, some encouraging signs prevail. In the last month, UK factories clocked their fastest ever growth in the last three years. Coronavirus has curbed global fuel demand a lot. OPEC countries are still in doubt about their total agreed production of oil. But other producers like Exxonmobile or Chevron stock price have risen by 13%. Stocks in the engineering sector are also rising with more than 10% growth. Banks are also finding this opportunity worth investing in. At least 21 banks have expressed their interest to invest 2,050 crores in Bangladesh, more than 700 of which has been invested by early December. As a law, countries that are having vaccines are getting more investment proposals. The Asian share market is also ascending, Japan registered their 30 year high stocks. Outside Japan, Asia-Pacific countries are experiencing a 0.8% increase. Drugmakers have been racing to be the first to develop a successful coronavirus vaccine and their invention is now the mainstay of world politics.
On the other hand, European Union’s plan to impose restrictions on vaccines has generated much controversy. ICC secretary-general has expressed concern on behalf of 45 million businesses worldwide about the negative results that could emerge from the vaccine ban. The unavailability of vaccines in developing markets can cost the global economy a whopping 4 to 9 trillion USD.
Debates can be held on how the vaccines are better distributed or how the priority of vaccine administration should be directed, but one is for sure; the world economy is experiencing an unprecedented era. European Union’s restrictions can disrupt the whole vaccine supply chain. On the other hand, no mechanism of fair distribution is yet to be present. All debates apart, the buoyant economic promise that the vaccines brought, should help global trade to recover from the record low position caused by this microorganism is a silver lining the world is looking at with bated breaths.