2 surprising stocks of coronavirus vaccines to buy now

Right now everyone is talking about large cap coronavirus vaccine players such as Pfizer (NYSE: PFE), Modern (NASDAQ: ARNM), and AstraZeneca (NASDAQ: AZN), due to the excellent efficacy of their candidates in Phase 3 clinical trials. What investors may not realize, however, is that the potential success of these companies’ experimental vaccines is already being reflected in the their stock prices. There is arguably little money to be made in these stocks for investors new to the game.

It may be more cost effective to focus your attention on emerging manufacturers of COVID-19 vaccines such as CureVac (NASDAQ: CVAC) and Novavax (NASDAQ: NVAX). Contrary to popular belief, these small caps have a high probability of advancing their experimental coronavirus vaccines in the market, and this potential is not yet part of their stock price.

How can small investments in CureVac and Novavax become big winners? Let’s find out.

The case of CureVac

CureVac is a Dutch biotech that has earned over 56% for investors since its initial public offering (IPO) in August. The most promising candidate in its pipeline is its investigational messenger RNA (mRNA) coronavirus vaccine, CVnCoV. In November, CureVac revealed that patients who received CVnCoV in phase 1 developed potent neutralizing antibodies against the coronavirus, as well as T-cell responses that could potentially protect them from COVID-19 in the long term.

The investigational vaccine had several serious side effects after administration. These involved fatigue, headache, muscle pain, chills, and fever. All of these issues were resolved in two days. If Pfizer and Moderna’s Phase 1 trials serve as an indication, CureVac’s mRNA candidate could be headed for success in subsequent trials. Pfizer and Moderna’s mRNA vaccine candidates achieved at least 90% protection against circulating strains of SARS-CoV-2 in phase 3, after inducing neutralizing antibody production and T cell responses in volunteers by Phase 1.

CureVac’s vaccine candidate will likely move to phase 3 by the end of the year. Keep in mind that this potential vaccine is stable at refrigeration temperature (for ease of transport) and can last up to 24 hours in a room temperature environment. (Pfizer’s needs must be kept extremely cold, which presents challenges.) The EU has already pre-ordered 225 million doses of CVnCoV (plus an option for 180 million more) at 10 euros per dose. That’s a lot of revenue for a biotech with a market cap of $ 18 billion. CureVac also plans to expand its manufacturing capacity to 300 million doses in 2021 and 600 million doses in 2022.

The company is supported by the Bill & Melinda Gates Foundation as well as the German government. To date, CureVac has received more than € 552 million in funding and investment from the latter to advance a vaccine against the coronavirus. With a high chance of approval on the table, this is certainly a coronavirus stock that biotech investors shouldn’t miss out on.

The case of Novavax

Like CureVac, Novavax is supported by the Gates Foundation and has largely rewarded investors this year. If you had invested $ 1,000 in its stock last November, your investment would have increased to $ 25,000 by December 2nd. Even after a monstrous rally, Novavax still only reached a market cap of $ 8.06 billion.

The preparation period was primarily due to its ability to advance its protein-based coronavirus vaccine candidate (NVX-CoV2373) into Phase III clinical studies. This survey recruited more than 60% of the necessary volunteers, with the data reading likely in early 2021.

Like the Pfizer, Moderna, and CureVac vaccines, NVX-CoV2373 produced high levels of neutralizing antibodies and T cell response when given to phase 1 volunteers. However, unlike Pfizer and Moderna, the Novavax vaccine involves directly injecting viral proteins into one’s body. , as opposed to injecting genetic material that codes for these proteins.

So far, Novavax has received more than $ 2 billion in funding from Operation Warp Speed, the Gates Foundation, and various US government agencies for the research and development of its experimental vaccine. The company has also secured at least 176 million pre-orders of NVX-CoV2373 from the UK, Canadian and Australian governments.

The biggest investment case for Novavax lies in its capacity to manufacture NVX-CoV2373. Currently, the company has entered into an agreement with the Serum Institute of India (the world’s largest vaccine producer) to manufacture 2 billion doses. Even the production capabilities of large-cap biotechs developing coronavirus vaccines are eclipsed by this number. This makes Novavax a top choice for investors who are late in the game and still want to try their luck by betting on the successful rollout of coronavirus vaccines.