VBI Vaccines stock has dropped along with the other COVID-19 vaccine players after Russia announced it developed a coronavirus vaccine. Like many other analysts, we are surprised Mr. Market gave the Russia news any credibility since its vaccine candidate did not complete a Phase 3 trial. Our assessment is that investors were just looking for an excuse to book profits.
The good news is that now there’s an opportunity to pick up cheap exposure to some quality names before they start running again. One name at the top of the list is VBI Vaccines stock, which we covered in early July before it’s run to almost $7 and you can read here.
Now we know everyone is trying to find the next Novovax and here at Insider Financial have nailed a few winners during the coronavirus pandemic before their big moves, namely Inovio Pharmaceuticals, Moderna, and Sorrento Therapeutics. The reason we like VBI Vaccines right now is that it already has an approved product (albeit only in one country for now), and it could win FDA approval for Sci-B-Vac next year. As we take a closer look, VBI Vaccines stock could be setting up for a Novavax-like move.
VBI Vaccines Stock
First up, here’s a little background info for those that aren’t familiar with VBI Vaccines. VBI Vaccines is a commercial-stage biopharmaceutical company developing the next generation of vaccines to address unmet needs in infectious disease and immuno-oncology. VBI is advancing the prevention and treatment of hepatitis B, with the only tri-antigenic hepatitis B vaccine, Sci-B-Vac®, which is approved for use and commercially available in Israel, and recently completed its Phase 3 program in the U.S., Europe, and Canada, and with an immunotherapeutic in development for a functional cure for chronic hepatitis B.
VBI’s enveloped virus-like particle (eVLP) platform technology enables the development of eVLPs that closely mimic the target virus to elicit a potent immune response. VBI’s lead eVLP programs include a vaccine immunotherapeutic candidate targeting glioblastoma (GBM), a prophylactic cytomegalovirus (CMV) vaccine candidate, and a prophylactic pan-coronavirus vaccine candidate.
VBI is headquartered in Cambridge, MA, with research operations in Ottawa, Canada, and research and manufacturing facilities in Rehovot, Israel.
VBI Vaccines Stock Latest Developments
Since our last write-up, there have been a few notable developments pertaining to VBI Vaccines stock. These include:
- Productive pre-submission meetings with FDA and EMA in May and July 2020 expected to enable filings of regulatory approval applications for Sci-B-Vac® in the U.S., Europe, and Canada beginning Q4 2020
- Pre-clinical data for VBI-2901, VBI’s coronavirus program, expected to enable selection of clinical candidate(s) in Q3 2020 and the manufacturing of clinical study material, expected in Q4 2020
- Additional clinical data expected for VBI’s therapeutic hepatitis B program and therapeutic GBM program in the second half of 2020
- $86 million cash, cash equivalents, and short term investments provide strong financial support for upcoming milestone-rich quarters
Canadian Government Funding
Earlier this month, VBI Vaccines stock was awarded up to a CAD$56 million contribution from the Strategic Innovation Fund of the Government of Canada to support the development of the company’s coronavirus program, VBI-2900, through Phase 2 clinical studies. VBI Vaccines said:
In addition to progressing the VBI-2900 program through Phase 2 clinical development, VBI expects to use this funding to finalize all manufacturing process development and to expand the workforce at its research and development facility in Ottawa. Further discussions with the Government of Canada may explore additional federal funding to support late-stage development.
We believe C$56 million is just a start and more funding is highly likely. A vaccine is urgently needed and governments around the world are throwing money at the problem. The Canadian government doesn’t want to get left behind and wants a vaccine for its citizens.
There are many COVID-19 vaccine players to choose from. Some will work, while others won’t. With VBI Vaccines stock, you’re not only investing in a coronavirus vaccine play but also Hepatitis B and Glioblastoma potential as well. Furthermore, VBI Vaccines stock has one of the smallest market caps in the space at just $800 million. Inovio has a market cap of $2.5 billion. Sorrento is valued at $3 billion and Moderna at $26 billion. All it takes is one pr to send VBI Vaccines stock flying, especially with almost 10% of the float short.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:VBIV or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.