Updated: Aug 8, 2020
I think we can all agree that if a stock took a 40% decline in just a couple days time, we'd all probably freak out and begin questioning our decision making skills when it comes to investing. That's a normal response that one would expect to witness when faced with such adversity right? So why are Vaxart investors not fazed because that's exactly what just happened to them?
For starters, even with the recent decline the stock is still up well over 250% since the start of the year. Not bad, for a couple months of holding a company's stock that most people have never heard of before. Secondly, this isn't Vaxart's first stock decline this year. During the end of June, Vaxart investors watched the price gap to $14 per share and shortly therafter take a nose dive to the mid $6 range. This was due to one of it's bigger institutional investors exiting a long held position. However, the stock has since rebounded and set a new 52-week high of $17.49. Since then the share price has decreased with the stock currently trading a little under $10 per share.
Now that we know the Vaxart investors are up a pretty penny. One must dive deeper to understand why some investors continue to hold on after such a steep decline in share price. Here's what they know: Vaxart has a pipeline with plenty of potential to bring big value to the company. Let's take a closer look at the company and why investors are so bullish.
The most obvious benefit Vaxart offers is their proprietary vaccine technology. The company is developing oral recobinant protein vaccines which are administered using stable room temperature tablets. This is a wonderful alternative to injections and should be more widely accepted by the public if given the option. Furthermore, tablets are more durable which gives it a logistical advantage when moving product from manufacturers into the markets.
The company's Covid-19 vaccine was recently selected to the U.S. Govertment's Operation Warp Speed. They were choosen to participate in the Non Human Primate challenge study.
They have a Phase 2 ready Norovirus vaccine program, which they published a new study in the Journal of Infectious Diseases. The company has two Phase 1 human studies already completed. Norovirus is thought to be the main cause of gastrointetinal distress and figured to cost $10.6B in the United States per year.
The company is currently developing a therapeutic vaccine targeting cancer and dysplasia caused by HPV types 16 and 18.
Development of vaccines for Respiratory Syncytial Virus or RSV: common cause of respiratory tract infections.
The company entered into a Research Collaboration with Janssen & Prevention B.V. (Janssen) to produce a universal flu vaccine. Vaxart will be allowed to use proprietary antigens by Janssen which are currently in a pre-clinical challenge study.
Lastly, they are in Phase 2 trials for their Monovalent Seasonal Influenza vaccine.
Tally these facts and you have one heck of an argument for why investors are so bullish. I expect for Vaxart to rebound once again and head further north in the coming months. The company is hard at work to bring value to the market place and at any moment big news surrounding their pipeline could send it rocketing once again. If you didn't know, now you know why the Vaxart investors are not fazed by the recent price action. The future for Vaxart is very bright and those in the know, well thy're holding on to their shares for dear life.