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Vaxart (VXRT) to Make Vaccines to Check Coronavirus, Stock Up

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Shares of Vaxart, Inc. (VXRT - Free Report) soared 72.1% after the company announced that it has initiated a program to develop vaccine candidates for fighting the new coronavirus infection. The new vaccine candidate will be based on the company’s proprietary oral vaccine platform, VAAST.

Additionally, the stock was up 22.4% in pre-market trading on Monday. However, shares of Vaxart have plunged 42.4% in the past year compared with the industry’s decrease of 4.5%.

Coronavirus is commonly found in animals, causing several diseases like diarrhea and upper respiratory problem. However, in humans, this virus results in mild-to-moderate illness including common cold. Seven different types of coronavirus have been discovered so far including the recent one in China. It has been named 2019 Novel Coronavirus (2019-nCoV) by the CDC.

Vaxart recently published results from an influenza challenge study, which demonstrated that its oral tablet vaccine primarily protects through mucosal immunity, which is a potential key factor when targeting mucosal pathogens, such as this new coronavirus.

Per the press release, Vaxart plans to develop vaccine candidates based on the published genome of the 2019-nCoV and evaluate the same in preclinical studies for the ability to generate both mucosal and systemic immune responses.

Meanwhile, several other large and small pharma companies are working on developing a vaccine to fight the coronavirus outbreak. Last week, pharma giant Johnson & Johnson (JNJ - Free Report) announced its interest in developing a vaccine with multi-pronged approach to address the current novel coronavirus (2019-nCoV) outbreak. The company initiated the process to identify compounds with antiviral activity against 2019-nCoV and develop a vaccine candidate.

Moreover, a Bloomberg article reported that AbbVie’s (ABBV - Free Report) HIV drug Kaletra is recommended for treating 2019-nCoV infection by a Chinese authority. The drug has a history of clinical response against SARS.

Additionally, smaller biotechs like Inovio Pharmaceuticals (INO - Free Report) and Moderna, Inc. received grants from CEPI, a public-private nonprofit organization, to develop a vaccine for the 2019-nCoV infection.

This rapidly-spreading virus in China with its latest data from the World Health Organization, claims more than 14,000 infected cases and almost 304 deaths in the country. With several companies showing interest and promising to provide support to fight the infection, development of vaccines may be accelerated.

Zacks Rank

Vaxart currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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