December 15th, 2015

These 6 stocks are best positioned for the rollout of a COVID-19 vaccine, according to Goldman Sachs

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Summary List Placement
  • Once a successful COVID-19 vaccine is developed, investor attention will quickly shift focus to the distribution and administration of the vaccine, Goldman Sachs said in a note on Friday.
  • Goldman said it believes US vaccinations will be available within a few months from approval as pharmaceutical companies ramp up their manufacturing to meet demand.
  • Here are six stocks that are "best positioned" for the rollout of a COVID-19 vaccine, according to Goldman.
  • Visit Business Insider's homepage for more stories.

With all eyes on the development of a successful COVID-19 vaccine, investor attention will quickly shift focus to the distribution and administration of a vaccine, Goldman Sachs said in a note on Friday.

Within just a few months from approval, US vaccinations should be available as pharmaceutical companies ramp up the production of the vaccine to meet demand. 

And while the most important factor in terms of a successful rollout of the COVID-19 vaccine will be the willingness of the population to take it, investors can focus on companies that could benefit from its distribution and administration.

Here are six stocks that are "best positioned" for the rollout of a COVID-19 vaccine, according to Goldman Sachs.

Read more: Don't put too much energy into predicting the result -- 5 key tips for clients from strategists at JPMorgan's $1.9 trillion asset management arm with less than two weeks to go to the election

1. Supply Preparedness

Best Positioned: Becton, Dickinson and Company

"We believe BDX is very well positioned to receive a significant share of the WW syringe/needle orders which in theory could go well above the 1 billion incremental units the company has outlined. This demand drives a high likelihood of upside to our medical division estimates for BDX," Goldman said.

2. Vaccine Distribution

Best Positioned: McKesson

"MCK is serving as centralized distributor for the government's vaccine distribution plan, in a role that is similar to the one MCK filled during the H1N1 pandemic. Thus MCK should play a prominent role in ensuring any potential vaccines are delivered on time and safely to the proper administration sites," Goldman said.

3. Vaccine Administration

Best Positioned: Drug Retailers CVS, Walgreens, Rite Aid

"Most experts we talked to agreed that the Retailers will need to be involved in efforts to inoculate the broader population, meaning the Retailers could be poised to benefit post-vaccine approval. Further, we'd note that the administration has already announced an agreement with WBA and CVS to provide and administer COVID-19 vaccines to residents of LTC facilities. Our illustrative analysis sizes a potential positive EBIT contribution from COVID vaccine administration (CVS, WBA)."

4. Persisting Testing Tailwinds

Best positioned: Becton, Dickinson and Company, Abbott Laboratories

"Demand trends toward broad vaccine uptake following the approval of a vaccine will likely be uneven given several variables, and some recent measures of US vaccine demand have edged lower. We believe testing will remain a major market opportunity over the next 12-18 months, possibly longer, that exceeds current expectations which will present sales contributions tailwinds for testing companies including, specifically, BDX and ABT," Goldman said.

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