January 19th, 2021 | 10:50 CET
Pfizer, Q&M Dental Group, Johnson & Johnson: Where do profiteers of the pandemic lurk?
Table of contents:
Pfizer: The top dog with a clear strategy
Who wears the pants in the joint project between the German Company BioNTech and the US Company Pfizer becomes apparent when we look at the current delivery problems - while things are running smoothly in the US, the supply of vaccines in Europe continues to stall? But these problems should not change the expected good figures of the vaccine manufacturers - after all, no product in the world is currently more in demand than vaccine doses. Whoever invests in Pfizer receives, in addition to the justified Corona fantasy, a stake in ten other blockbusters, all of which account for more than a billion dollars in sales.
Pfizer's focus on biopharmaceuticals in recent years is a commitment to innovation. Generics and other drugs whose patent protection has expired are to be spun off. There is also a fantasy around Pfizer that the mRNA process, which partner BioNTech successfully used to develop its vaccine, may yield other innovative drugs in the future. The stock lost more than 16% over a one-year period. This development is disappointing, given the underlying conditions. However, given the dividend yield of slightly less than 4%, the stock may be an alternative for cautious investors.
Q&M Dental Group: Corona tests for Asia
A more speculative option is the stock of Singapore-based dental clinic operator Q&M Dental Group. The Company operates 114 practices in the island nation and also has a foot in the door in markets in Malaysia and China. During the first phase of the pandemic last year, demand for dental treatment plummeted in Singapore. But thanks to government support, the negative consequences for Q&M Dental Group were limited. Later, the Company acquired a stake in Acumen Diagnostics Pte, a manufacturer of corona tests. In September, Acumen finally received a license from the Ministry of Health to offer its clinical laboratory tests in Singapore.
Although Q&M Dental intends to maintain the core dental business it has successfully run since 1996, the need for rapid tests is creating fantasy around Q&M Dental's investment story. The dental practice chain is currently valued at around EUR 280 million and believes it will perform between 1,000 and 2,000 tests a day in Singapore in 2021.
Additionally, it plans to push its testing business with foreign countries to generate more revenue. Given the pandemic and the somewhat more challenging environment for dental treatments, Q&M Dental appears to be well-positioned with its new business around Corona tests. The share is traded in Germany but has not yet gained momentum.
Johnson & Johnson: Jack of all trades in the healthcare sector
One stock that may not be a high-flyer but has offered steady growth for years is Johnson & Johnson. The Company provides care and hygiene products, medical technology and also drugs. From successful products for psoriasis to cancer drugs, Johnson & Johnson has it all. In medical technology, the Company suffered a minor setback in 2020: Because many operations were postponed, sales in the division fell by double digits. But this effect is said to be only temporary. Although the figures for the first nine months of the fiscal year still show a small drop in sales of 2%, this effect could already be smaller in the full year's view.
While Johnson & Johnson is not known as a vaccine pioneer, the Company is working on a vaccine against the coronavirus. Although there have been setbacks in the clinical trials, the causes had nothing to do with the active ingredient. The Company operates very profitably and is also active in many areas of healthcare. On a one-year horizon, the stock delivered a zero return, but the price recently picked up speed, with it increasing more than 7% last month. The share is a reliable standard stock with good prospects. There are various ways to profit from the expected increased investment in the healthcare sector. Even standard stocks could have catch-up potential. Smaller niche stocks, such as Q&M Dental Group, score with their low profile and business in Asia's growth market.
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