3 game-changing coronavirus vaccine stocks that can make you rich
Investors need a slew of high-growth stocks as part of every well-balanced biotech portfolio, and the market furor surrounding the prospect of a COVID-19 vaccine is creating the perfect conditions for those chasing yields in the biotech space.
Thanks to market enthusiasm for the vaccine development activities of these three companies, each posted stunning growth in the first half of this year, making them attractive options for profit-seeking investors.
Before the pandemic, Inovio Pharmaceuticals (INO -0.75%) was a typical biotech stock, with its growth entirely dependent on favorable clinical trial results. Inovio ended last year with a market capitalization of $335 million and a few million in cash, hardly a major contender in the vaccine development market. Now, after a flurry of positive news about its early-stage COVID-19 candidate, the company has a market cap of $3.7 billion and $270 million in cash, and its stock price is up more than 650 % since the beginning of the year.
The impressive increase in market capitalization of more than 1,060% also represents a pair of stock market sales (ATM) of $121.7 million and $208.2 million in the spring. These dilutive actions might have appalled investors were it not for the stock’s rapid and speculative expansion over the same period.
Inovio has a handful of vaccine-related products in the pipeline that could drive future growth. Between the impending release of Phase 1 trial results for its U.S. government-funded vaccine delivery device, reports on the progress of its Phase 2 COVID-19 candidate and the advancement of its pipeline programs non COVID, the rest of the year will be a good time to consider an investment at Inovio.
If its vaccine delivery device proves safe and effective in clinical trials, it is reasonable to assume that the government will want to purchase a large volume to enable inoculation of its employees and military.
With stock up over 550% this year, Novavax (NVAX -2.32%) has all the characteristics of an investment that could enrich investors. Like Innovio, Novavax does not yet have a product approved for sale, but it does have a COVID-19 vaccine candidate that looks promising. Its candidate uses a proprietary adjuvant (an agent that stimulates the immune response), Matrix-M. The company says its enhanced immunogenicity will reduce the effective dose required, making large-scale manufacturing more economical.
In early July, Novavax received $1.6 billion in funding from the US government’s acceleration program, Operation Warp Speed, suggesting its candidate may also be one of the furthest along in the development process.
Investors should expect the company’s shares to surge again if it announces favorable results in the combined Phase 1/2 trial of its COVID-19 candidate, due later in July. However, even if its COVID-19 attempt is not successful, the company still has a slew of other late-stage projects, meaning it will still be a worthy long-term growth stock, if not a millionaire. .
vaxart (VXRT 2.58%) has grown faster than Inovio and Novavax, exciting investors with its impressive expansion of around 4,000% this year thanks to its unique COVID-19 vaccine tablet. The tablet can be made as a vaccine against several different diseases, and unlike liquid vaccines, oral tablets are stable, require no support from healthcare personnel to administer, and do not need any of the typical products adjacent to the vaccination like sterile syringes or wipes, making them significantly more attractive to health systems around the world. This means that even if its COVID-19 candidate is not effective, Vaxart is still sitting on very valuable technology that it could use to generate revenue with its other programs.
On July 13, it raised $90 million by selling 11.2 million shares, suggesting it is preparing to make major investments in its clinical development pipeline or manufacturing capacity, and the stock soared by more than 50% as a result. Like Novavax, Vaxart was chosen to participate in Operation Warp Speed, but for a preclinical project that did not result in as much direct funding.
Vaxart’s market capitalization is still just $778 million, though that’s a massive expansion from the $11 million it stood at a year ago. If the leadership continues to forge new collaborations with potential vaccine makers while reporting favorable results during the clinical trials of its candidate, as it has done so far this year, it could well be the most effective COVID-19 stock for wealth seeking investors.