What happened
The war against COVID-19 is intensifying, and investors are betting on companies that they believe will be victorious. Actions of Vaxart (NASDAQ: VXRT), Inovio Pharmaceuticals (NASDAQ: INO)and Sorrento Therapeutics (NASDAQ: SRNE) 96%, 31% and 14%, respectively, shot up on Thursday.
And that
Vaxart’s shares nearly doubled after the biotech company announced a “memorandum of understanding” with Attwill Medical Solutions (AMS) for the potential production of its oral experimental vaccine COVID-19 for the SARS-CoV-2 virus.
“We believe that AMS experience coupled with its ability to manufacture one billion or more doses per year would be a beneficial addition to our group of [contract development and manufacturing organization] partners and enable the large-scale manufacturing and final supply of our COVID-19 vaccine to the US, Europe and other countries that need it, “Vaxart CEO Andrei Floroiu said in a press release.
COVID-19 shares rose Thursday. Image source: Getty Images.
Vaxart says its vaccine, given as a tablet instead of an injection, has multiple advantages over other candidate vaccines developed by its competitors.
“We believe that our oral vaccines, generated on our proven platform, have the potential to offer superior protection against airborne viruses such as SARS-CoV-2 by activating the immunity of both the mucosa and the system while administered with a stable tablet at room temperature, a huge logistical advantage in large vaccination campaigns, “said Floroiu.
Inovio, meanwhile, announced that he was expanding his executive team. Gene Kim, who brings CFO experience to multiple public companies, will be tasked with driving Inovio’s growth in Asia. Dr. Mammen (Anza) Mammen, who was previously head of the United States Department of Defense Pandemic Warning Team, will help direct the company’s clinical development operations.
Sorrento is likely to rise as investors bet that the increase in the coronavirus case count worldwide would increase the likelihood that its experimental antibody treatment would be approved for emergency use by health authorities. The biopharmaceutical company says the treatment may neutralize the coronavirus.
Now what
If coronavirus infections continue to increase at an alarming rate, more money is likely to flow to companies that are working to develop vaccines and treatments. However, with more than 100 companies vying to be the first to find a panacea for the crisis, it’s hard to know which one will ultimately win the race.
Therefore, while they hold promise not only for their potential investment merits, but also for the good they can do for humanity, Vaxart, Inovio Pharmaceuticals and Sorrento Therapeutics should be considered high-risk actions.
