These 3 vaccines could be winners after the pandemic

We all know that the pandemic is not over. But that does not mean it is too early to start thinking about what vaccine stocks will climb if the crisis eases.

“Vaccines?” you might ask. “Will the demand for vaccine not be finished then?” Probably not.

Experts predict that the coronavirus and new strains will be far into the future. And that means countries will have to buy the vaccine doses outside of the pandemic.

It also means that many businesses can benefit from it – not just those who first launched a vaccine. Currently, 82 vaccine candidates are in clinical development and 182 in preclinical development, according to the World Health Organization.

The following three ventures address new variants of concern – strains that are more transmissible or more dangerous than the original coronavirus. And this work can make their winners further down.

1. Novavax

Novavax (NASDAQ: NVAX) recently released positive data from a UK Phase 3 trial and a South African Phase 2 trial of its research vaccine. The company has 96% efficiency against the original coronavirus, 86.3% efficiency against the British strain and 55.4% efficiency against the South African variant. The company then expects to generate data from its U.S. Phase 3 trial and, in the second quarter, complete a request for authorization for emergency use.

These results show that Novavax can handle today’s variants to some extent. But Novavax takes things a step further. The company is also investigating tribe-specific candidates. Possibilities include a strain-specific booster or a combined vaccine. Novavax plans to launch a clinical trial by the middle of the year.

The advantage of Novavax is that the original candidate for coronavirus vaccine is close to the market. It could generate revenue in the coming months and a potential new product could generate revenue later.

2. Gritstone

Gritstone Oncology (NASDAQ: GRTS) is at an earlier stage. The advantage of this is that it starts with focusing on dealing with new strains. The company signed a clinical trial agreement with the National Institute of Allergy and Infectious Diseases earlier this year. Together they plan to start a Phase 1 study.

Here’s the interesting aspect of Gritstone’s approach: the company’s research vaccine contains the coronavirus vein protein and parts of other viral genes. The idea is that the body’s T cells can then identify and fight the virus – even if it is highly mutated.

The vaccines of today focus on the peak, that is the protein used to infect. The challenge is that if too many mutations alter the peak protein, the vaccine’s effectiveness decreases.

Preclinical research has shown that Gritstone’s candidate stimulated the neutralizing antibody and T cell response against the peak, and the T cell response against many other viral genes. If clinical trials confirm this, the Gritstone vaccination could be a formidable arm against today’s tribes and those of the future.

3. Innovation

Inovio Pharmaceutical Products (NASDAQ: INO) was one of the first to participate in the vaccine. But the road was bumpy. The US Food and Drug Administration (FDA) placed a partial clinical hold on the company’s phase 2/3 test in the second half of last year. And it slowed things down. The FDA had questions about the trial and the smart device used to deliver the vaccine candidate.

Since then, the FDA has lifted the hold on the Phase 2 portion. And Inovio completed the participation in the part of the trial. However, the hold remains at phase 3, pending questions about the delivery device.

So far, Inovio has only reported data from the Phase 1 trial. The candidate produced neutralizing antibodies in most participants.

It’s encouraging. However, since the coronavirus strains have gained ground, it will be important to see data from the trial at a later stage. This and the fact that Inovio has lagged behind makes me wary of the vaccine candidate’s prospects of gaining market share.

But that’s what brightens the picture. Inovio has started work on a new “pan-COVID” vaccine to better address variants. The company uses its gene optimization algorithm to look at ranges of today’s strains. The idea is then to create a synthetic vein protein that covers the present variants and those of the future.

This type of vaccine can be a game changer. This is because it can protect against possible variants before they even get a chance to develop.

Invest in Novavax, Gritstone and Inovio only for their new stamp projects, it is currently a high risk because research is in the early stages. The companies have not yet started clinical trials with these candidates. But if the early test results are positive, the story can change quickly. And that’s why these three biotechnology companies need to keep an eye out for investors hoping to take the vaccines of the future.