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Pfizer, a company that has contributed probably trillions of dollars to global GDP over the past 6 months, is massively underperforming the stock market when yo
by birken 5y ago
Pfizer, a company that has contributed probably trillions of dollars to global GDP over the past 6 months, is massively underperforming the stock market when you compare pre-pandemic to now [1]. The stock price in theory should price in all the future cash flows from the vaccine. What is your basis that the pharma companies are making tons of money on these vaccines?
It isn't like the vaccines are pure profit. The pharma companies have to develop them, they have to produce them, they have to distribute them, and if they charge too much they get into massive political trouble. It seems like it is basically a giant marketing effort for pharma companies where everybody in the world is benefiting.
1: For example, from Feb 1st, 20 to today, Pfizer is up 10% and the Vanguard total stock index VTI is up 35%
- ds206 5y ago"everybody in the world is benefiting" Did the patent issues get resolved? Last I heard, the drug companies didn't want to share because of reasons.
- _Microft 5y agoThe parent commenter might have wanted to say with that that the vaccines help end the pandemic. The world benefits from that because we are losing massive amounts of money per day while still being stuck in the pandemic.
- redrain 5y ago> What is your basis that the pharma companies are making tons of money on these vaccines? I am not sure, but doesn't companies make a lot of money if their product sells a lot? I thought it was basic economics. Do you really need to look at the stocks to understand it?
- tonfa 5y agoIsn't Pfizer mostly handling manufacturing and distribution for biontech?