President Donald Trump is home from the hospital, and vaccine makers are looking to rally. Importantly, one of these winning names is new to the race. Oragenics (NYSEMKT:OGEN) is looking to ride a wave of novel coronavirus vaccine enthusiasm, and OGEN stock is up 30% Tuesday as a result.
So why exactly is Oragenics shooting higher today? Well, the clinical-stage biopharma company acquired Noachis Terra in early May. Along with this acquisition came a coronavirus vaccine candidate — and one that was developed by the National Institute of Health.
Now, investors are bidding up OGEN stock on some big news. What? Oragenics plans to launch the vaccine into the clinical development process. Perhaps most important for investors is the fact that the U.S. Food and Drug Administration is giving it support. On Tuesday, the company shared it had broad FDA backing to file an investigational new drug (IND) application by the end of the first quarter of 2021. From there, it could enroll patients by Q2.
The first reason for this rally is likely the unique nature of its vaccine. TerraCoV2 specifically attacks the region of the virus that binds with the host cell, allowing it to replicate. This region is immunogenic, meaning that it is able to produce an immune response when triggered. With this design, Oragenics hopes its candidate generates a more “robust” response.
Investors also likely appreciate its plans for the vaccine to offer lifetime protection as well as protect against other strains of the coronavirus.
Why OGEN Stock Is Rallying 30%
The other reason investors are bidding up OGEN stock likely has something to do with Trump. Oragenics is far behind its peers, but it offers a unique — and potentially better — vaccine candidate. Investors have watched the president navigate diagnosis and hospitalization, and there is a lot of uncertainty. What we do know is that Trump has tried experimental remedies from the likes of Gilead (NASDAQ:GILD) and Regeneron (NASDAQ:REGN).
As a result, these companies are gaining a bit more legitimacy. Could the same happen to Oragenics and other innovative, early stage vaccine companies? It is also likely that watching Trump and other key officials test positive is bringing the coronavirus back into the spotlight.
Oragenics is far from a sure thing. It is a tiny company, and it has not met pure success. The company recently shared that the Biomedical Advanced Research and Development Authority rejected its request to receive funding through Operation Warp Speed.
If you are willing to take on some risk and dive into the vaccine race, make sure to keep OGEN stock on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.
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