The world economy is reeling under the pressure of the coronavirus pandemic. Nearly 15 million people have been infected by the virus globally so far and it keeps increasing everyday by leaps and bounds. The United States has been affected the most followed by Brazil and India.
However, hopes of vaccine approval and government stimulus packages have been boosting stock markets across the globe. Wall Street analysts are betting big on pharma companies that are working on developing a coronavirus vaccine. Moreover, with the reopening of businesses resulting in a spike in new coronavirus cases, the need for a vaccine is more than ever before.
Meanwhile, two of the big pharma companies leading the coronavirus vaccine development race announced promising data from early-stage studies earlier this week.
AstraZeneca AZN in collaboration with Oxford University reported encouraging interim data from a phase I/II study evaluating its coronavirus vaccine candidate, AZD1222. Data showed that patients vaccinated with the candidate generated strong antibody and T-cell responses in majority of the patients. Neutralizing activity against SARS-CoV-2, the virus that causes COVID-19, was observed in 100% of participants who received a second dose of the vaccine candidate. The company and the Oxford University have already started phase II/III studies in the United Kingdom Brazil and South Africa. A similar study is anticipated to start in the United States soon.
Pfizer PFE in collaboration with Germany-based biotech, BioNTech BNTX is developing four mRNA-based vaccines under BioNTech’s BNT162 program to prevent COVID-19. On Monday, the companies reported promising initial data from an early-stage German study on their most advanced investigational vaccine candidate, BNT162b1. Data showed high, dose-level dependent SARS-CoV-2-neutralizing titers and RBD-binding IgG concentrations were elicited in patients after second dosing. Moreover, the candidate could achieve these benefits at relatively low dose levels. Importantly, the data showed that BNT162b1 elicited high level CD4+ and CD8+ T cell responses against the SARS-CoV-2 receptor-binding domain (RBD). The data were very much in line with the early positive data from the I/II U.S. clinical study of BNT162b1 announced earlier in July. Overall, the data showed that BNT162b1 can be administered safely, with a manageable tolerability profile. A phase IIb/III study is expected to start by the end of this month.
The FDA earlier this month, granted Fast Track designation to two vaccine candidates — BNT162b1 and BNT162b2. This status will likely accelerate the development and quicken the review process for the candidates.
Both AstraZeneca and Pfizer have secured manufacturing deals to support their commitment of supplying a billion doses of vaccines by 2021.
Apart from AstraZeneca and Pfizer, several biotechs are focused on developing vaccines for COVID-19. Here we discuss three small biotech companies — Moderna MRNA, Vaxart VXRT and Novovax NVAX — that are progressing well with their vaccine development. These stocks have seen significant increase in their share price and any positive development on their vaccine development efforts will push these stocks further.
Moderna was the first company to start a human trial to develop a coronavirus vaccine in March. The company reported encouraging data last week from a phase I study evaluating its mRNA-based vaccine candidate, mRNA-1273, demonstrating seroconversion in all patients. The company is expected to start a phase III study by the end of this month. The stock has more than tripled so far this year on the back of its quick developmental progress with mRNA-1273. Per a Jefferies report, the stock can reach $125 per share in the best-case scenario, which is more than 50% higher than the closing price on Jul 20. Some analysts expect its coronavirus vaccine to generate more than $5 billion in sales. Meanwhile, Moderna stated that it is on track to deliver 500 million doses of 100 μg dosage of mRNA-1273 per year, which can possibly increase up to 1 billion doses per year, beginning 2021.
Vaxart has been in the spotlight this year following its efforts to develop an oral tablet vaccine against the deadly coronavirus disease. Last month, Vaxart’s oral COVID-19 vaccine candidate was selected for investigation in a non-human primate challenge study. The new study will be organized and funded by Operation Warp Speed (“OWS”), which is a new national program, to provide substantial quantities of safe, effective vaccine for Americans by January 2021. The company plans to start a phase I study on the oral tablet vaccine candidate in the second half of this year. Shares of the company have skyrocketed more than 4200% so far this year.
Novovax is developing its coronavirus vaccine candidate, NVX-CoV2373, in a phase I/II study. The candidate has been selected for the U.S. government’s OWS program. The company has also been awarded $1.6 billion by the federal government to support the late-stage development of its coronavirus vaccine candidate, NVX-CoV2373. The funding will also help the company establish large-scale manufacturing and deliver 100 million doses of NVX-CoV2373, as early as late 2020. A pivotal phase III study to evaluate NVX-CoV2373 is anticipated to begin in the fourth quarter. Shares of Novovax have skyrocketed almost 3400% so far this year.
While Moderna and AstraZeneca carry a Zacks Rank #2 (Buy), Pfizer, Vaxart and Novovax have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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