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Now Could Be the Perfect Time to Buy This Under-the-Radar COVID Vaccine Stock


#You might be kicking yourself that you didn’t buy shares of coronavirus vaccine leader #Modern (NASDAQ:MRNA) earlier this year. The biotech’s vaccine is now on the market in the U.S. and its market cap has skyrocketed.

#But there are still other COVID-19 vaccines potentially on the way that could ultimately achieve commercial success. Their stocks could also be big winners, perhaps even bigger than #Moderna’s. #It’s not too late at all to get in on up-and-coming biotechs with promising vaccines in development. #Actually, now could be the perfect time to buy one under-the-radar COVID-19 vaccine stock — #Altimmune (NASDAQ:ALT).

#Image source: #Getty #Images.

#Good news, bad news

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#If you’re a pessimist, you might focus on the fact that #Altimmune’s shares have lost roughly two-thirds of their value since #July 20, 2020. #You could also worry that the U.S. #Food and #Drug #Administration (FDA) placed a clinical hold on the company’s application to begin a clinical study evaluating COVID-19 vaccine candidate #AdCOVID.

#It’s true that #Altimmune has had some bad news lately. #However, the negatives don’t outweigh the positives for the biotech.

#Despite the decline in recent months, #Altimmune’s shares are still up close to 490% year to date. #That’s neck-and-neck with #Moderna’s performance, by the way. The slide in #Altimmune stock through last week had more to do with overly exuberant investors driving the share price up too much too fast than with anything worrisome for the company.

#What about that FDA clinical hold? #Sure, it would’ve been better for #Altimmune to have received a quick green light from the agency to advance #AdCOVID into clinical testing. #However, this clinical hold has nothing to do with concerns about the experimental vaccine. The FDA requested some tweaks to protocols planned for the clinical study and some additional manufacturing data.

#Altimmune stated on #Dec. 23 that it has already responded to the FDA’s clinical hold letter — a quick turnaround, since the letter was received the previous day. The biotech agreed to the agency’s requests. #Altimmune doesn’t “anticipate a significant impact on the overall clinical development timeline” at this point.

The news of the FDA’s clinical hold caused the biotech stock to plunge 18%. #However, I think the sell-off provides a buying opportunity for investors who believe in #AdCOVID’s potential.

#Potential remains huge

#That potential is still huge. #To understand why, just look at the limitations of the leading COVID-19 vaccines.

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#Most of the coronavirus vaccines in development require two doses. #This is the case for both of the vaccines that have already won FDA emergency use authorization (EUA). There are two obvious downsides to these two-dose vaccines. #First, they’re more expensive. #Second, it’s possible that some people won’t go back to get their second dose and therefore won’t receive maximum protection against COVID-19.

The top coronavirus vaccines also have cold chain requirements. #For example, #Pfizer‘s vaccine must be stored at ultracold temperatures. #Other vaccines, including #Moderna’s, can be stored in standard refrigerators up to a point.

#Also, the leading vaccines provide systemic immunity (meaning the body’s primary immune system fights against infection). #However, they could still allow the coronavirus to multiply in areas such as nasal mucus passages.

#Altimmune addresses all of these issues with #AdCOVID. #It’s a single-dose intranasal vaccine that can be stored at room temperature for extended periods and will last in standard refrigerators for at least two years. #As a bonus, #AdCOVID appears to provide mucosal immunity against the coronavirus that causes COVID-19.

#If #AdCOVID proves both safe and highly effective, #Altimmune just might emerge as a key player in the global coronavirus vaccine market.

The big drawback

There’s one big drawback for #Altimmune, though: #It’s still way too soon to know if #AdCOVID will deliver on its tremendous potential. #We’ll have to wait for the company to test its experimental vaccine in three clinical stages to learn whether that will be the case.

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#Because of this uncertainty, #Altimmune won’t be the kind of stock that’s attractive to all investors. #Its risk level will remain very high until more data is available for #AdCOVID. #For aggressive investors willing to take on these risks, though, now could be the best opportunity you’ll have to buy this promising COVID vaccine stock.





[ source link ]
https://www.fool.com/investing/2020/12/30/now-could-be-the-perfect-time-to-buy-this-under-th/

##Perfect ##Time ##Buy ##UndertheRadar #COVID ##Vaccine ##Stock

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