Aug 19, 2021 (WallStreetPR via Comtex) -- It appears increasingly official as a piece of cultural news: the pandemic is far from over. What's more, policymakers are starting to officially authorize booster vaccinations.
From CNBC: "The United States will begin widely distributing Covid-19 booster shots next month as new data shows that vaccine protection wanes over time, top U.S. health officials announced Wednesday."
The big upshot of that news is that the stocks heavily involved in the distribution side of the vaccine process are set to get their own jab in the arm.
But this may be more than a fresh vaccine trade and a minor blip in the post-pandemic narrative. It may amount to news that this is going to be with us more or less permanently as an endemic feature of human life. While that sounds bad, it may not end up being such a catastrophe - more likely, it amounts to spending 45 minutes once a year and going to get a shot, but otherwise, life goes on.
In any case, it has become big business, both now and in the long run. The focus in this theme is about companies that administer, transport, logistically coordinate, and store vaccines.
If this version of reality is the correct framework, it would have wide-ranging implications for a number of stocks in those niches, including CVS Health Corp /zigman2/quotes/209664499/composite CVS +0.31% , Allstar Health Brands Inc /zigman2/quotes/201410027/delayed ALST +19.78% , Walgreens Boots Alliance Inc /zigman2/quotes/203410933/composite WBA -1.38% , McKesson Corporation /zigman2/quotes/206975466/composite MCK +1.02% , FedEx Corporation /zigman2/quotes/203047719/composite FDX +0.29% , and Carrier Global Corp /zigman2/quotes/217080228/composite CARR -0.59% .
CVS Health Corp /zigman2/quotes/209664499/composite CVS +0.31% is one of the largest vaccine distributors in the US given its position as major pharmacy. The company engages in the provision of health care services. It operates through the following segments: Pharmacy Services, Retail or Long-Term Care, Health Care Benefits, and Corporate/Other. The Pharmacy Services segment offers pharmacy benefit management solutions. The Retail or Long-Term Care segment includes selling of prescription drugs and assortment of general merchandise.
The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, medical management capabilities. The Corporate/Other segment involves in providing management and administrative services.
CVS Health Corp /zigman2/quotes/209664499/composite CVS +0.31% most recently announced an innovative health care solution, Aetna Virtual Primary Care, that reimagines the primary care experience and makes it easier for people to get the health services they need, anytime, anywhere.
"The future of digital health solutions is rapidly unfolding," said Dan Finke, Executive Vice President, CVS Health, and President, Aetna. "Aetna Virtual Primary Care is a first-of-its-kind health care solution that provides a simple, affordable, convenient way for eligible members to receive quality primary care from a physician-led care team that knows them and is accessible from virtually anywhere."
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. Shares of the stock have powered higher over the past month, rallying roughly 3% in that time on strong overall action.
CVS Health Corp /zigman2/quotes/209664499/composite CVS +0.31% managed to rope in revenues totaling $72.6B in overall sales during the company's most recently reported quarterly financial data — a figure that represents a rate of top line growth of 11.2%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($10.1B against $59.3B, respectively).
Allstar Health Brands Inc /zigman2/quotes/201410027/delayed ALST +19.78% is clearly the most speculative name in this group, and the company is unproven and only starting to seriously commercialize its operations. But it has a direction that could be interesting in this narrative context, so we include it here.
ALST is a specialty pharmaceutical and nutritional supplements company moving toward a potentially prominent position in the Covid management space, especially when it comes to hot spots in underserved markets around the world.
Allstar Health Brands Inc /zigman2/quotes/201410027/delayed ALST +19.78% recently announced a change at the top and updated its guidance on operational focus. Dr. Peter D. Bagi is apparently stepping down from his role as CEO to dedicate more time to medical research projects. The Company has asked Peter Wanner, AllStar's current CFO, to assume the role of CEO.
According to the company's most recent release, Wanner has an accounting background, and has more than 30 years' experience working with startup companies, public companies, and larger companies experiencing growth related demands. He has extensive international experience, working in Mexico, the UK, the US, and Canada. He also has deep deal-making and fundraising experience, and has been principally responsible for numerous multi-million-dollar funding deals, including a role in a working group that raised $900 million for a Canadian consortium. Wanner was designated a Certified Public Accountant in 1981.