Vaxart Stock Has Built-In Value Well Beyond Its Covid Pill

I’ll admit, it’s hard for me not to be massively bullish on California-based biotech company Vaxart (NASDAQ:VXRT) stock.

The Vaxart (VXRT) logo is surrounded by face masks, syringes and pills.
Source: Ascannio /

With the exception of occasional price spikes, VXRT stock has been underpriced and underappreciated, in my humble opinion.

Many traders first discovered Vaxart when the share price skyrocketed in February. Others knew about the company before that event, as Vaxart has been a strong biotech contender in the battle against the Covid-19 pandemic.

Because of its sometimes flashy price action, some folks might try to pigeonhole VXRT stock as a meme stock. Yet, I would invite them to look beneath the surface as Vaxart is a true innovator in the biopharmaceutical space.

With the company’s anti-viral product portfolio making exceptional progress lately, Vaxart could be not only a moneymaker, but also a lifesaver.

A Closer Look at VXRT Stock

Low-priced biopharmaceutical stocks can move quickly, and by that I mean in both directions. Therefore, there’s risk involved with VXRT stock, so please don’t take a large position size.

Now that I’ve put that cautionary note out there, I’ll feel better about emphasizing the potential for multi-bagger gains. We’ve seen it happen before, and the next moon shot could be right around the corner.

Need proof of this? Observe, then, that VXRT stock catapulted from around $9 to a 52-week high of $24.90 in late January and early February.

Granted, this was a time when meme stock mania was on fully display. Therefore, it’s possible that Reddit users might have contributed to that share-price run-up.

But then, there was also a price spike (albeit, less dramatic) in April, when VXRT stock doubled from $5 to $10 in a matter of days.

I’m not trying to imply that you should rely on the short-squeeze crowd to push the stock price up. As I’ll attempt to prove, there are other reasons to own shares of Vaxart.

It’s Still the Pill

Vaxart released a fresh investor deck not too long ago, and it reminded me what I liked so much about the company in the first place.

Just to get everybody up to speed, Vaxart is well known for its oral tablet Covid-19 vaccine candidate, known as VXA-CoV2-1.

Consider the advantages of using a tablet instead of a needle for a Covid-19 vaccine:

  • Convenient mode of administration
  • Rapid and painless
  • No needles required
  • Self-administration is possible – may eliminate the need to make appointments and stand in lines
  • Could reduce some people’s fear or hesitancy towards getting vaccinated
  • Vaxart’s pills can be stored at room temperature

Thus, even as the meme-stock fervor has come and probably gone, Vaxart’s primary appeal is still the pill.

Confronting Multiple Viruses

However, I don’t want to give the impression that Vaxart’s orally administered Covid-19 vaccine candidate is the only reason to believe in the company.

Also significant is Vaxart’s clinical-stage, broad-spectrum anti-viral known as Vapendavir.

This product candidate addresses a range of conditions, including:

  • Epidemic hand, foot and mouth disease
  • HRV infection in chronic obstructive pulmonary disease (COPD) patients
  • Enteroviral infections (mainly relating to children)
  • Seasonal recurrent lower respiratory tract infection in preschoolers
  • Seasonal asthma exacerbation in school-age children

“We believe that Vapendavir has lifesaving potential in the treatment of a range of viral infections for which there are currently no approved antivirals,” said Vaxart CEO Andrei Floroiu.

Clearly, Vaxart is blazing a trail with Vapendavir.

Moreover, the company recently signed an agreement with Altesa Biosciences allowing Altesa to develop and commercialize Vapendavir.

We can hope that this arrangement will , sooner or later, get Vapendavir to the people who could benefit from it, as quickly as possible.

The Bottom Line

By now, you should have an idea of why I’m rooting for Vaxart to succeed in all of its clinical endeavors. It’s not only about the upside that may be coming with VXRT stock. There’s a bigger picture here, and it involves essential health outcomes and the well-being of the public.

If that’s not a reason to like Vaxart right now, then I don’t know what would be.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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