9:01:29 AM PDT - Saturday, October 24th, 2020

Vaxart: An Alternative Opportunity in the COVID-19 Vaccine Landscape  

By Editor - Fri Oct 16, 8:37 pm

On Tuesday, vaccine specialist Vaxart (VXRT) announced it has dosed the first subject in the Phase 1 study of VXA-CoV2-1, the company’s oral, room-temperature stable COVID-19 vaccine candidate.After the vaccine impressed in preclinical models, it is a timely announcement from Vaxart. While the small biotech is significantly behind other, mostly bigger competitors in its Covid-19 vaccine program, as recent events have shown, bringing to market a viable solution is far from hassle free.Earlier this week, Johnson & Johnson halted its Covid-19 vaccine candidate’s Phase 3 study due to a participant’s unexplained illness. That event was swiftly followed by Eli Lily pausing enrollment for its Covid-19 treatment program due to safety concerns.For FBR Riley analyst Mayank Mamtani, the bigger players’ struggles highlight the alternative opportunity Vaxart presents for investors.“As the COVID-19 cases continue to spike WW and leading programs from J&J and AZN experience speedbumps with late-stage development, albeit temporary, it is becoming increasingly important to have multiple shots on goal in the C-19 vaccine landscape and recommend investors diversify positions, including with alternative modalities, e.g., VXRT’s oral candidate, which not only have the potential to be self-administered but are also room-temperature stable and rapidly scalable, conferring significant advantages with respect to stockpiling and distribution, particularly relevant in non-western economies with limited healthcare resources,“ Mamtani commented.Vaxart stock has experienced a roller coaster ride in 2020. Despite being up by 1637% year-to-date, the share price has actually retreated by over 60% since the July yearly highs. Mamtani believes that in addition to the pullback, its “valuation disconnect relative to more advanced C-19 vaccine peers, presents an additional compelling buying opportunity.”To this end, Mamtani rates VXRT a Buy along with a $22 price target. Investors could be pocketing a massive 262% gain, should his thesis play out over the next year. (To watch Mamtani’s track record, click here)Overall, only one other analyst is currently keeping a tab on Vaxart’s progress, also recommending the stock a Buy. Vaxart, therefore, has a Moderate Buy consensus rating backed with a $19.50 average price target.

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Vaxart: An Alternative Opportunity in the COVID-19 Vaccine Landscape

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