Why Is BiondVax (BVXV) Stock Up Today?


BiondVax (NASDAQ:BVXV) stock is a big mover today, soaring on news of an antibody development agreement. As of this writing, BVXV stock has gained more than 26% as investors price in this catalyst.

A close-up concept image of a tiny glass vial with a strand of DNA in it.
Source: Shutterstock

So what do you need to know?

This move is a welcome surprise for investors in BiondVax. A year ago, BVXV stock was trading around the $4 level. Currently, and even after today’s impressive rise, this stock is trading for $1.71. Accordingly, it seems investors have had few catalysts to buy into BiondVax until now.

Investors should note that BiondVax has not been alone in this dilemma. In fact, as Wall Street has pivoted to less-risky assets, biotech stocks have been some of the first to fall. As a company focusing on treatments for infectious diseases, BiondVax has been in a tough spot, especially because it is in clinical stages.

That said, things are turning around today. Let’s dive into the rather bullish catalyst investors are looking at with BiondVax.

BVXV Stock Surges Higher on Collaboration Agreement

Today, BiondVax announced that the company signed a definitive collaboration agreement with Max Planck Institute for Multidisciplinary Sciences and the University Medical Center Gottingen in Germany. This agreement will focus on the development of various antibody therapies.

Interestingly, this agreement specifies that BiondVax will work on developing nanosized antibodies. According to the official announcement, these antibodies are easier to produce, more convenient for patients, and come with less logistical requirements. As part of the deal, BiondVax will be exploring these antibodies for a number of conditions such as asthma, psoriasis, psoriatic arthritis and macular degeneration.

Investors should note that this agreement builds on existing work, as BiondVax has already started the development of the nanosized antibodies. In order to maximize the chance for commercial success, it is focusing on conditions that have specific antibody drug targets.

There’s a lot to like about this rather dense announcement. For investors attempting to value BiondVax’s pipeline of potential treatments, this announcement is certainly a step in the right direction.

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On the date of publication, Chris MacDonald 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 InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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