Oral recombinant protein vaccine developer Vaxart (NASDAQ:VXRT) is, of course, just one of the numerous competitors developing a Covid-19 vaccine. Because of that, not everyone is going to be convinced of the VXRT stock value.
Yet, if you look closer at Vaxart’s proposed novel coronavirus vaccine, known as VXA-CoV2-1, you should find something different from the others. Vaxart’s Covid-19 vaccine program, which has already completed Phase 1 clinical trials, is unique in several respects.
Therefore, it’s hasty to dismiss Vaxart’s vaccine just because other drugmakers are further along the clinical timeline. After all, being first to market isn’t the only way to earn strong revenues.
And by the way, the company just provided a business update which should impress current and prospective shareholders. We’ll certainly cover that, but first let’s inspect the price action of the stock.
VXRT Stock at a Glance
When we consider that VXRT stock’s 52-week low is just $1.08, it’s amazing to think about how far it has come.
It’s entirely possible that the stock will never be that cheap again. At the very least, we can say that on multiple occasions, the share price has gone much higher than $1.
One example would be the summer of 2020, when VXRT stock shot up to the $17 area. Folks who bought the shares near that price learned an important lesson: it’s typically not a good idea to chase after stocks after they’ve gone vertical.
Thus, the Vaxart share price tumbled below $5 in September. That was followed by sideways, choppy price action, until the stock catapulted to an astounding 52-week high of $24.90 in early February of this year.
Again, chasing can lead to capital loss. Some Vaxart shareholders had to learn this a second time when the stock price tumbled in February, landing at $7.15 on Feb. 26.
The point here is to accumulate the shares when the market is calm, not when the shareholders are manic.
A Different Approach
First off, I should mention that Vaxart doesn’t only offer a Covid-19 vaccine candidate. The company also has vaccines for the norovirus, influenza, human papilloma virus and respiratory syncytial virus.
What makes Vaxart’s vaccines special? One differentiator is the fact that Vaxart’s vaccines are tablets, not shots. That’s a big deal because, let’s face it, getting a shot isn’t much fun.
And by the way, these tablets have enteric coatings, which make them easier on the stomach.
Plus, Vaxart’s vaccine products are room temperature-stable tablets. In other words, freezing storage temperatures would no longer be required.
Also, all of Vaxart’s vaccines contain a TLR-3 adjuvant component, which activates the innate immune system and is intended to stimulate broad immune responses.
In addition, Vaxart’s proposed Covid-19 vaccine was recently shown to be potentially protective against new and emerging strains of Covid-19.
As you might expect, Vaxart CEO Andrei Floroiu strongly emphasized VXA-CoV2-1’s possible protection against future Covid-19 variants:
Our Phase I results highlight the importance of our differentiated vaccine design, as they suggest VXA-CoV2-1 could have broad activity against existing and future coronavirus strains. These results are timely, as we are seeing the emergence of new variants less responsive to first generation vaccines, thus making potential cross-reactivity another important advantage of next-generation vaccines.
In a recent business update, Vaxart pointed out that VXA-CoV2-1 targets both the spike protein (S) and nucleoprotein (N). Consequently, new viral variants may be less likely to escape protection with VXA-CoV2-1.
There was more good news in the business update, as Vaxart revealed that VXA-CoV2-1 is expected to advance to Phase 2 testing during 2021’s second quarter.
And on the fiscal front, Vaxart disclosed that it had ended last year with cash and cash equivalents of $126.9 million. That’s a pretty good financial position for a biotech niche up-and-comer.
Vaxart isn’t the most well-known Covid-19 vaccine maker. It also won’t be the first drugmaker to get a Covid-19 vaccine to the market.
However, this doesn’t mean that investors should dismiss VXRT stock. VXA-CoV2-1 has distinct, identifiable advantages. Furthermore, the company is in a good financial position.
Hence, for a Covid-19 vaccine investment with real potential, consider giving Vaxart a try.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.