Biotech Stocks Are On The Rise Amid News From Novavax
When we hear the term coronavirus stocks, it can refer to a broad range of sectors. Depending on the context, it could be the new-economy stocks, spanning from gaming companies and online food delivery to biotech stocks. Like it or not, small-cap biotech stocks have been a popular asset class to watch this year. The biotechnology industry has been relatively quiet in recent weeks as there are no major updates thus far. But this week, biotech stocks are back on investors’ radar once again.
We have talked about how biotech stocks have been having breakouts overnight. This is more prevalent among small-cap biotech stocks. One of the biggest winners in the space is Novavax Inc (NVAX Stock Report), with a whopping 2,200% increase year to date. Shares of NVAX skyrocketed yesterday and are 32% higher at the end of the closing bell. The catalyst? The federal government will pay the vaccine maker $1.6 billion to expedite the development of a coronavirus vaccine. This is the largest deal to date from Operation Warp Speed. The latest funding sent a strong signal to investors and kept them thinking, “is this the best biotech stock to buy right now”. When the funding news was out, it sent a few small-cap biotech stocks running on Tuesday. But the question here is, can this trend continue?
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Top Coronavirus Stocks To Watch Before Friday: Vaxart
Vaxart (VXRT Stock Report) is another small-cap biotech stock, and the company develops oral tablet vaccines for Covid-19. The company reported positive preclinical data for this vaccine candidate in April. However, what’s really driving VXRT stock higher in recent weeks? That was when the company’s vaccine candidate got selected by the US government’s Operation Warp Speed for funding and inclusion in a non-human primate challenge study. Vaxart’s inclusion in Operation Warp Speed was exactly the kind of publicity the small-cap biotech needed. Shares of VXRT skyrocketed almost 300% year to date.
In the meantime, the company also has potential catalysts on the way. They might be able to keep the stock’s momentum going. Vaxart expects to announce results from its collaboration with Johnson & Johnson (JNJ Stock Report) on a universal influenza vaccine soon. Shall the results be positive, VXRT stock might see another boost in their stock prices. Being the only oral vaccine platform for Covid-19 also provides several competitive advantages, including ease of use and distribution. And if it goes well, VXRT stock might fly over the roof if the company can prove its vaccine is safe and effective in neutralizing the virus.
Top Coronavirus Stocks To Watch Before Friday: Emergent BioSolutions
Emergent BioSolutions (EBS Stock Report) has been all over the news since the beginning of the pandemic, with a number of COVID-19-related contracts and partnerships. EBS stock is considered as one of the top biotech stocks to buy. This came after it recently appeared on a list of companies receiving the largest Covid-19 government contracts. In mid-June, the company announced a manufacturing partnership with AstraZeneca (AZN Stock Report) to produce its Covid-19 vaccine candidate, valued at approximately $87M. Shares of EBS have risen more than 60% year to date.
A few months back, Emergent BioSolutions also announced a partnership with Johnson & Johnson to provide contract development and manufacturing services to support J&J’s Covid-19 vaccine efforts. The company also signed two contract agreements with Novavax. One is to manufacture Novavax’s NanoFlu and the other to support Novavax’s Covid-19 vaccine candidate. With these reasons, there’s a great chance other vaccine makers would want to partner with EBS, considering that the company has several manufacturing sites in Baltimore. Clearly, the company’s ability to secure multiple partnerships is testimony to its strong capabilities. These make it an ideal candidate for the coronavirus play. The company stands a chance to benefit if any of its partners become the first to create a safe and effective vaccine.