COVID vaccine plays

protrade

Well-Known Member
#1
In the 2 weeks, Astra Zeneca shot up from 3200 to 4500, as news of its COVID vaccine progress kept market excited. In last couple of days, stock corrected sharply. I think it will raise doubts about whether there was insider info - of today’s announcement that the vaccine has issues, and will be paused.

I think Astra Zeneca is slated for a big fall. That is obvious.

But how will the market see other vaccine plays - especially Aurobindo? Aurobindo has fallen significantly in the same time - as news of Astra Zeneca’s progress impacted others in the race.

Will market see all vaccine plays with suspicion? Or will Aurobindo get a boost with failure of Astra Zeneca vaccine?

My guess is that Aurobindo is relatively much cheaper multiples, and it also has experience with antiretrovirals. Covid vaccine isn’t the first such effort for Aurobindo.

This news should actually help Aurobindo significantly. Also, overnight weakness in the US will weigh on broader market - and being a defensive and a value play, Aurobindo could see boost from sector rotation as well.
 

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