Investing in coronavirus vaccine stocks today is a lot different from investing in them last year. Then, they represented a big risk. Companies hadn't yet produced data on safety or efficacy, for example. These days, clinical trials have reached advanced stages. And Moderna (MRNA 2.57%) and Pfizer (PFE -0.61%) have gotten even farther, commercializing their vaccines. In this Motley Fool Live video recorded on Jan. 22, 2021, healthcare and cannabis bureau chief Corinne Cardina and Fool.com contributor Adria Cimino discuss key points to keep in mind before investing in the sector today.
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Corinne Cardina: What are three investor takeaways about investing in the coronavirus vaccine space today, 12 months after the pandemic really began?
Adria Cimino: Well, I think that investment in vaccines today is less risky since you can bet on later-stage companies, or now those with authorized products. So it's open to more investors. Before, it was just those who really didn't mind risk would get right in. But if you were more cautious investor, you were really kind of left out. My second point, with that idea in mind, cautious investors should aim to invest in the lower risk opportunities, maybe the company that already has a product out, or is really close to market with their products. And there's still room for aggressive investors who want to search for those smaller companies that maybe have something in pre-clinical or phase 1 and they might get a real increase in their investment. Finally, it's always important to diversify. Don't just invest only in COVID vaccines stocks, only in a company for its vaccine candidate. You want to invest for the whole pipeline or all the commercialized products.