A Biotech Stock that Could Move Higher as 2020 Ends
The Covid-19 situation is far from over, but the market rebound has surprised investors. There is still unpredictability and fear of a potential crash; but with stock trading being opened up to the common individual by online stock brokers, traders are not as hesitant to get started now as they were decades ago.
The Biotech Sector Is Hot
Everyone knows that there are biotech companies developing Covid-19 vaccines and treatments. As rumors and news floated around, we’ve seen many of these companies’ stocks gain significantly. Motley Fool contributor Keith Speights mentioned that there is a lot more to come.
Speights stated that there are some stocks that could potentially double as 2020 ends. That’s because of research that is going into the novel coronavirus; which can lead to the contribution of treatment and prevention of other potential epidemics.
Potential Opportunity for Novavax
The most impressive among the big biotechs have been Novavax ($NVAX). The stock has risen by almost 3,400% so far in 2020. Speights believes that the rest of the year could see the biotech stock continuing to rise.
The growth of Novavax can be pinned on major developments. When upward trending results were reported from its NanoFlu flu vaccine candidates’ late-stage study in March, that eventually caused the Food and Drug Administration (FDA) to file for approval. By early August, Novavax had positive results to announce from its novel coronavirus NVX-CoV2373 vaccine candidates’ phase 1 study.
Market Cap Nowhere Near Rival Moderna’s
Though Novavax had such a massive year-to-date gain, its market cap is just a third of its’ rival biotech company Moderna’s ($MRNA) market cap. Moderna is further ahead with its Covid-19 vaccine and has already started phase 3 testing.
Novavax has begun phase 2 trials. The results from this study could be the catalyst for the company’s stock to potentially double by the end of the year, says Speights. The phase 2 study of NVX-CoV2373 has already begun in South Africa. Trials will also begin in Australia and the US soon.
Phase 3 Trials Could Have a Positive Impact on Novavax Stock
Novovax could follow the path of Moderna. Moderna began the phase 3 trial of its vaccine candidates about 2 months after it began the phase 2 study. Following that time table for its NVX-CoV2373 vaccine, could cause Novavax stock to react similarly to Modern’s stock.
In conclusion, there is a lot of potential in the biotech sector as vaccine development is speeding up. If you’re a more intrigued by the biotech sector, make informed trading decisions using our advanced but user-friendly trading software.
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