The scandal to avoid during this crisis (IM 590)

As the Coronavirus pandemic is hitting hard, the number of cases and the death is skyrocketing with about 4.9 millions people already infected and 318,000 dead worldwide. Big healthcare companies like Abbott Laboratories, Moderna, Invio, Johnson & Johnson, Gilead Sciences, Inc., Novavax, Inc., Regeneron Pharmaceuticals, Inc.,   are battling to discover the vaccines for Covid-19. The stock price of these companies are skyrocketing as they are devoting their time to discover the vaccines.

Let’s forget Theranos Inc. did a decade ago because it would cost millions of life. There might be lots of Elizabeth Holmes waiting to turn their business around in the name of vaccines. Let’s be careful before investing in the companies.

The start-up Theranos Inc. went from everyone’s darling to the drumster fire in a matter of months after the Wall Street Journal exposed huge flaw in company’s promise to detect an array of illness from a single “finger-prick” of blood writes the Bloomberg Business Week.

Ironically, this pandemic is creating a similar situation like the Theranos a decade ago. Hoping for the lucrative gains these companies might recreate the same environment like the one cultivated by Theranos. The stock price of these companies since the pandemic looks very bullish.

  1. Moderna Inc. (MRNA):

2. Inovio Pharma Inc.(INO):

3. Gilead Sciences, Inc.(GILD):

4. Novavax, Inc. (NVAX):

5. Johnson & Johnson (JNJ):

 

The fight against Covid-19 is ethical but we all should be aware of the negative side they could bring. We shouldn’t fall on the same trap like Theranos did.We should be aware of the scandal that could possibly happen.

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