Stockpiling vaccines: the subsequent move
Fresh Take:
Valneva kicks off the Phase-3 trial for its Lyme disease vaccine, VLA15, teaming up with Pfizer. The study will enroll 6,000 participants aged five years and above, who'll get either three primary and one booster dose of the experimental vaccine or placebo shots. If all goes well, the vaccine might be up for approval by 2025.
VLA15 is the sole Lyme disease vaccine candidate currently in clinical trials globally. Given the alarming prevalence and potential severity of tick-borne infections, Valneva and Pfizer might rake in annual revenues over a billion dollars, should the vaccine find success. In a cash boost, Valneva pocketed an upfront payment of $25 million from Pfizer to commence the study.
Post the announcement, Valneva's stock soared. Unlike Novavax (see Investor-Info), Valneva's progressive steps extend beyond Covid-19 vaccine advancements to other promising projects.
Pfizer's CEO, Albert Bourla, hinted at substantial M&A moves, and he's delivered. Pfizer recently snapped up Global Blood Therapeutics for $5.4 billion, gaining access to an approved sickle cell disease medication with potential blockbuster status under Pfizer's marketing muscle.
INVESTOR-INFO
Novavax
Slashed Forecasts
Novavax's stock nosedived around a third on Tuesday, following a drastic cut to its full-year revenue forecast. Instead of the projected $5 billion, the company now expects a mere $2.3 billion from its Covid-19 vaccine sales. The reasons for analysts' earlier revenue overestimation remain obscure. With Novavax's Covid-19 vaccine garnering little traction in Europe, high demand in the US would have come as an unexpected surprise. The company is advised to concentrate on its seasonal flu vaccine and the next gen of its Covid-19 vaccine, as the technology is robust, but the execution has faltered so far.
BB Biotech
Steady Climb
Like the biotech sector as a whole, BB Biotech's stock has witnessed a marked increase recently. Apart from Moderna, BB Biotech also owns stakes in firms such as Alnylam, which recently posted positive results from a study targeting a specific form of heart failure. This breakthrough could extensively broaden the pool of treatable patients. Alnylam specializes in RNA-based drugs that can selectively suppress genes. BB Biotech's stock caters to biotech enthusiasts who prefer not to invest in individual stocks.
- Novavax's stock experienced a significant drop, falling around a third, following a substantial reduction in its full-year revenue forecast from $5 billion to $2.3 billion.
- Unlike the struggling Novavax, Valneva has moved beyond Covid-19 vaccine advancements, making progress with other promising projects, as evidenced by its stock's soar after the Phase-3 trial announcement for its Lyme disease vaccine VLA15.
- If Valneva's Lyme disease vaccine, VLA15, proves successful, the company, in collaboration with Pfizer, might generate annual revenues exceeding a billion dollars, according to predictions based on the potential severity and prevalence of tick-borne infections.
- Novavax is encouraged to focus on its seasonal flu vaccine and the next generation of its Covid-19 vaccine, as the technology appears robust, yet the execution so far has fallen short.
- As investors eye health-and-wellness and finance opportunities in the stock market, BB Biotech's stock, which offers exposure to various biotech companies like Alnylam, has seen a steady increase, following promising results from Alnylam's study targeting a specific form of heart failure.
