These 2 Coronavirus Stocks Could Soar in the Second Half of 2020
https://www.fool.com/investing/2020/07/15/these-2-coronavirus-stocks-could-soar-in-the-secon.aspx
Both Moderna and Vaxart are expecting data readouts that will send the stocks skyrocketing – if the news is positive.
Since Moderna has no approved drugs and its COVID-19 vaccine is the furthest along in development much of the company's future is riding on this play. If it works, Moderna's science is validated, and the company's pipeline is far more valuable than it is today. If, however, the company's COVID-19 vaccine fails its review, the stock drop will be precipitous. We'll know more by the end of the year.
This dark horse might emerge as a big winner
Vaxart is way behind Moderna and other Operation Warp Speed drugmakers like AstraZeneca (NYSE:AZN) and Pfizer (NYSE:PFE). These larger competitors are set to begin phase 3 trials in July. And they have the money to produce and distribute large amounts of a vaccine around the world.
Vaxart has none of that – yet. Back in April, the company announced that its COVID-19 vaccine had been successful in animal models. Last month the micro-cap was elevated to the big time when the government's Operation Warp Speed (OWS) program selected its vaccine candidate for a confirmation animal study. This news was really big because, like many tiny biotechs, Vaxart is starved for cash. While the company has raised another $90 million just this week, that's still not enough to pay for an expensive phase 3 trial involving thousands of people. But now that OWS is involved, money is no longer an issue. If Vaxart's science is validated in the government's confirmation study, more funding will follow.
Of course, in terms of speed, Vaxart is lagging most of its competitors. The tiny biotech has almost no chance of being first to market. And yet that might not matter. Indeed, its vaccine candidate might prove to be the most valuable of all. That's because Vaxart's COVID-19 vaccine is not a shot, but a pill.
Vaxart's entire vaccine platform is based on oral medication. Back in 2018, its tablet influenza vaccine defeated FluZone, the vaccine from market leader Sanofi (NASDAQ:SNY), in a phase 2 head-to-head study. Vaxart's oral flu vaccine reduced infection rates by 47 percent, compared with 43 percent from FluZone.
Like Moderna, Vaxart has signed agreements to produce a billion doses of its vaccine next year. And an oral medication if it works will give the company a logistical advantage in terms of ease of use. Vaxart's drug candidate is the only oral vaccine being evaluated by OWS.