Climate Change May Draw $200 Billion Vaccine Boom, Analyst Says
Climate Change May Draw $200 Billion Vaccine Boom, Analyst Says
(Bloomberg) -- Higher temperatures across the globe could expose almost a billion more people to risks for diseases like Zika and Ebola by 2080 and that may be a boon for some drugmakers, Morgan Stanley tells investors.
Climate change could spell the rapid spread of infectious diseases and Europe in particular is at risk, analysts led by health-care specialist Matthew Harrison wrote in a note to clients.
The $500 billion infectious disease market could see demand for an added $125 billion in new vaccines, or as much as $200 billion assuming premium pricing for more complext new treatments, Morgan Stanley estimates.
Sanofi, GlaxoSmithKline Plc and Merck & Co. are among the best-positioned vaccine makers with resources already setup for large-scale production, the bank said. Other players like Pfizer Inc, Johnson & Johnson, Takeda Pharmaceutical Co. and Moderna Inc could also play a role.
Pfizer, one of the largest vaccine makers globally, hasn’t disclosed any recent research into tropical diseases but has significant development capabilities, Morgan Stanley said. While Moderna’s efforts to develop a cancer vaccine are more closely followed by Wall Street, the mid-cap company also has a Zika vaccine and a treatment for chikungunya in development.
Morgan Stanley is not the only bank looking at investment opportunities from climate change, on Wednesday Goldman Sachs said it was hiring a sustainable-finance group that is looking into issues related to sustainability.
To contact the reporter on this story: Cristin Flanagan in New York at cflanagan1@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Bailey Lipschultz
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