Thanks to the COVID-19 Vaccine, Cold Storage Stocks Are the Next Big Thing


Dec. 11 2020, Published 9:47 a.m. ET

A number of COVID-19 vaccine companies are gaining ground, and Pfizer is one of them. However, the Pfizer vaccine requires extreme sub-zero cold storage.

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Because of this, cold storage companies are becoming increasingly vital to public health. That means investors are focusing on the profitability of cold storage stocks.

Why does the Pfizer vaccine require cold storage?

The Pfizer vaccine requires refrigeration at minus 70 degrees Celsius. This is because it uses messenger RNA (or mRNA) as a basis. Plus, there are no preservatives within the vaccine.

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Vaccines that use mRNA are a newer technology, and they can reportedly be produced at a faster rate than others. However, the need for cold storage could cause supply chain problems of its own, especially in underdeveloped nations.

Pfizer isn't the only company creating a vaccine that requires cold storage. Moderna's is also cold-dependent. However, Moderna's product only needs a temperature of minus 20 degrees to be kept stable. Moderna also takes the mRNA approach in their vaccine.

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What's in the Pfizer COVID-19 vaccine?

Aside from mRNA, the Pfizer COVID-19 vaccine contains four types of lipids, four types of salts, and sucrose. The lipids help encase (or protect) the mRNA as it makes its way into our cells. The salts help balance the vaccine's pH level to mimic our natural physical acidity. Sucrose, or just plain sugar, works to keep particles from sticking together when frozen.

 Like most intravenous drugs, the vaccine is mixed with a saline solution prior to injection.

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Cold storage companies are having their day

There's an opportunity here for cold storage companies who can help transport Pfizer and Moderna vaccines at the required sub-zero temperatures. If they're already working within the supply chain, it's a seamless match.

Best cold storage stocks

If you're looking fo the best cold storage stocks for COVID-19 vaccines from the likes of Pfizer and Moderna, you may want to check out these:

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  • Carrier Global Corp. manufacturers freezer boxes. The company trades under the ticker symbol "CARR" on the NYSE. Their stock has taken off this year by more than 1,300 percent—rising from penny stock ranks—so if you're going to get in, now would be the time.
  • Trane Technologies PLC is another freezer box manufacturer. They own a brand called Thermo King, which develops industrial-sized cold storage. The parent company trades under the ticker symbol TT on the NYSE. Trane saw a major dip during the first quarter, but has been climbing steadily since. They've managed to beat their pre-pandemic heights even after a hearty crash.
  • For an international company, check out American-German-Irish Linde PLC, which trades under the ticker symbol "LIN" on the NYSE. Their stock has performed well since the market crash in March, albeit more volatility than the others.

According to the chief operating officer of Trane Technologies, Dave Regnery, cold storage production is utterly necessary. He said in a statement, "Considering the urgent, global need for a COVID-19 vaccine, the world can't afford breaks in the cold chain."

Regnery added, "Our new Cold Storage Solutions can maintain temperatures of -70 degrees Celsius for an extended period of time, can be leveraged to help reduce degradation of a vaccination, and most importantly, could prevent vaccine ‘deserts' or lack of accessibility."


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