Long-time aggressive investors know that biotechnology stocks can offer huge upside or also get absolutely hammered, and in some cases go out of business. Needless to say the biotech world has had a very difficult year. Even the biggest and the best companies, many of which trade cheaper than big pharmaceutical companies, have suffered as investors have fled the sector.
Much of the blame for the poor showing is the very shrill rhetoric from politicians in an election year over drug pricing, and while there is always an argument for lower prices, taking down an entire sector is extreme.
In separate new reports, the analysts at Wedbush focus in on two companies that not only have data that could prove to be huge, but shares of each have been absolutely hammered over the past year, offering aggressive accounts the best entry points in some time. These stocks are very speculative, and though rated Buy, they are only appropriate for very aggressive portfolios.
This small biotech has taken investors on a roller-coaster ride over the past two years but could be ready for a big move higher. Novavax Inc. (NASDAQ: NVAX) is a clinical-stage vaccine company committed to delivering novel products to prevent a broad range of infectious diseases. Its recombinant nanoparticles and Matrix-M adjuvant technology are the foundation for ground-breaking innovation that improves global health through safe and effective vaccines.
Since 2011, Novavax has been developing influenza vaccines as part of a project that has been funded under contract with the U.S. Department of Health and Human Services, Biomedical Advanced Research and Development Authority (BARDA). The agency’s scope has been to develop seasonal and pandemic influenza vaccine candidates, based on Novavax’s proprietary virus-like particle (VLP) technology.
The Wedbush team notes that at recent keystone symposia in Cape Town, South Africa, Novavax introduced data for a nanoparticle flu vaccine. In the past, Novavax has used VLPs for flu and nanoparticles for respiratory syncytial virus (RSV) and Ebola. Using lessons learned from the development of RSV and Ebola nanoparticle vaccines, Novavax has identified several advantages, representing an evolution in vaccinology that have guided the company’s strategic approach:
- Influenza nanoparticles are engineered to display conserved antigenic regions, which elicit broadly neutralizing antibodies.
- Improved manufacturing yields.
- Use of Matrix M adjuvant, shown to be well-tolerated and highly effective at stimulating enhanced immunity.