The race for a coronavirus vaccine is far from over, and there is still plenty of time for investors to benefit from continued clinical development and research activity. Even a relatively small investment in the right company could be highly profitable.
If you have $ 10,000 to invest today, rather than investing it all in a high-profile effort, consider spreading your funds into a handful of these promising coronavirus stocks so your portfolio has a chance to grow even if an individual vaccine project fails. .
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Inovio Pharmaceuticals
Inovio Pharmaceuticals (NASDAQ: INO) The shares have delighted early investors by growing more than 500% this year as a result of their DNA-based prophylaxis project. Inovio’s vaccine has a long way to go before it can receive regulatory approval, but the company reported in late June that an astonishing 94% of its 40 phase 1 test subjects were found to have an immune response against the new coronavirus. This is especially exciting, since in preclinical animal tests the Inovio candidate protected himself against infection very effectively, so similar results will mean that he can prevent infection entirely in humans.
Each set of positive results will strengthen the validity of Inovio’s DNA drug platform, sowing the seeds for future growth through other pipeline projects and new collaborations. Look for announcements about new manufacturing collaborations to get a reading of where the company expects to be in a year. And remember that your coronavirus vaccine is just one interesting project out of many in Inovio’s portfolio.
GlaxoSmithKline
GlaxoSmithKline (NYSE: GSK) is the master of the coronavirus collaboration, with a myriad of research partnerships and joint development pacts with small biotechnologies such as Vir Biotechnology (NASDAQ: VIR) as well as the main competitors like Sanofi (NASDAQ: SNY). While GlaxoSmithKline’s shares have not yet recovered from the March collapse, the company’s deep integrations with other vaccine developers leave it in a solid position for future growth.
At the heart of GlaxoSmithKline’s coronavirus strategy is its adjuvant system to boost immune responses, which it claims will reduce the total amount of prophylaxis required for an effective dose. Management aims to manufacture at least a billion doses of the adjuvant by 2021, paving the way for dozens of additional collaborations, each of which would be a potential advantage to the company if it succeeds. The company’s most recent collaboration is with Medicago (TSX: ODM), a biotechnology that produces virus-like particles that GSK hopes to combine with its adjuvant to produce a highly effective and highly dose-efficient vaccine. This is the vaccine’s second joint effort to use the GSK adjuvant system, in a previous collaboration with Clover Biopharmaceuticals that started in June.
Look out for direct investment or acquiring smaller collaborators, which would be a strong sign that GlaxoSmithKline believes that these joint projects provide revenue in the future.
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Modern
Modern (NASDAQ: MRNA) It is one of the most popular populations in biotechnology, thanks to its tremendous growth and early entry into the coronavirus prevention career. However, Moderna’s shares may be overvalued as a result of the early exuberance surrounding its coronavirus project, and biotech investors should be aware that it is highly prone to large intraday fluctuations contingent on the news cycle.
However, its shortened clinical trial process is moving quickly and with relatively few stumbles; Moderna even launched its phase 3 trial for vaccine efficacy earlier this week. Based on preliminary data from their phase 1 trials, the candidate did not cause any life-threatening side effects, and the research subjects exhibited formidable levels of antibodies after vaccination, although it remains unclear whether they will be fully protected from infection.
Importantly, Moderna obtained additional funding of $ 472 million from the US government to support development in advanced stages, totaling $ 955 million. This means that the main barriers to the candidate’s success are their safety and effectiveness, rather than financial or commercial limitations. Future data disclosures and cash infusions are additional opportunities for growth, and it wouldn’t be too surprising if the company continued to expand rapidly throughout the rest of the year.
