Want to invest in a Covid-19 vaccine? You should avoid it like the plague

Scientists are getting closer to developing a vaccine for Covid-19. Success would be a game-changer and mark a key turning point in the fight against the virus.

Investors are betting it would be a boon for the winning company as governments around the world would immediately clamber to place orders.

Moderna, a biotechnology company based in America, is leading the race, according to Nina Deka of Robo Global, a research group. Its share price has risen by 170pc this year but has been very volatile.

Larger, more diversified companies carry less risk, according to Dan Mahony of Polar Capital, the investment manager.

They include Pfizer, which has a deal with BioNTech, a German biotech company; Johnson & Johnson, whose vaccine programme is nearing clinical trials; AstraZeneca, which has a partnership with Oxford University and expects to announce trial results in June; and GlaxoSmithKline, which is working with Sanofi, the French company.

However, healthcare analysts say it is foolish to chase a vaccine because the risks outweigh the rewards for investors. Ms Deka said attempting to find the winning company did not make sense as there were so many firms in the fold.

“This translates to a great deal of information to pick through. Most people don’t have that kind of bandwidth,” she said.