In this month’s Kieger AG’s Chart of the Month, we focus on the impressive success of Moderna, BioNTech SE/Pfizer and their partners in increasing the production capacity of their COVID-19 mRNA vaccines. Since the initial announcement of 1bn doses for 2021 in July 2020, Moderna and BioNTech/Pfizer have jointly increased capacity by 300% to 4bn for 2021 in just 10/11 months. For 2022, doses have been increased to 6bn from the 1.2bn announced in January.
Did you know that R&D expenses of the 15 biggest pharma companies have increased by almost 50% since 2016 to USD 133 bn in 2021? And expenses will continue to increase. Roche alone for example will spend close to CHF 15 bn on R&D in 2022, 1 bn more than in 2021.
We attended the ESMO (European Society for Medical Oncology) annual oncology congress in Paris from Sept. 9-13. We came away very positive from the meeting, though two souls remain in our chest. On one side we see the amazing potential and the opportunities for new oncology therapies. On the other side complexity seems to potentially increase and so does competition in the space. But what to do as an investor? Find some proposals in our ESMO Thoughts from the Street.
September is traditionally one of the most important conference months, as second quarter reporting is largely complete and third quarter reporting has not yet started. We attended the 19th annual Goldman Sachs European Medtech and HC Services Conference 2022, held in London on September 7-8, again in a physical setting. While we remain mindful of all the sector headwinds, we left the conference more convinced that there are selectively attractive investment opportunities at current levels.