ESG and why the pharma industry had limited benefits from Covid-19?

Synopsis: The Coronavirus pandemic was a positive trigger for pharma companies in general. For a battered sector struggling with reputational issues, Covid-19 was a golden opportunity to improve its track record and public perception. And it worked, at least for some time. The pandemic and the ensuing focus on healthcare helped improve the perception of the pharma industry. We have analyzed ESG and sustainability issues related news flow on the pharma companies which were picked up by EMAlpha AI-ML and these developments reemphasize the role of ESG and its increasing importance. But the perception has changed rather quickly. There are concerns about excessive profiteering on Covid-19 vaccines by the pharma companies. In the United States, public health campaigners are pressing President Joe Biden to do more to help poor countries vaccinate their population against the deadly Covid-19 virus. There are also specific ESG issues the pharma companies have to deal with. These factors explain why the stock price performance of the companies in the sector doesn’t look that great. As can be seen in the stock price performances of the leading pharma majors in the world (including companies like Johnson & Johnson or J&J, Pfizer, Roche, Novo Nordisk, Eli Lilly, AbbVie, Novartis, AstraZeneca, and Merck Pharmaceutical industry), the time before Covid-19 pandemic was not really great in terms of investor sentiment towards them. The performance improved but was less than what was expected. The Covid-19 pandemic didn’t help the investor sentiment all that much. EMAlpha AI-ML tools that analyze unstructured data picked up increasing activity in the news flow of many pharma companies in the second and third quarter of 2020 and the gloomy investor sentiment has continued. What do we learn from this analysis?

The Covid-19 Induced Global Chip Shortage

When Covid-19 hit the world in early 2020, a pall of gloom hung over the global economy and uncertainty ruled the day. The future was pretty much unchartered and countries and companies around the globe started swinging in the dark. The current chip shortage is the result of the unexpected ways in which the global industries’ demand has played out for the chips.

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