Why Is CanSino Biologics (CASBF) Stock Soaring Today?

  • CanSino Biologics (CABSF) shares are ripping higher on Wednesday, with CASBF stock up more than 75% on the day.
  • 13 cities in the Jiangsu province as set to roll out CanSino’s vaccine, which is the world’s first approved inhaled Covid-19 vaccine.
  • Some argue that it’s better than traditional administrations, although the stock still comes with risk.
CASBF stock - Why Is CanSino Biologics (CASBF) Stock Soaring Today?

Source: shutterstock.com/PhotobyTawat

CanSino Biologics (OTCMKTS:CASBF) are ripping higher on Wednesday, with CASBF stock up about 75% on the day. The move is startling, particularly given the poor price action we were seeing in the overall stock market for most of the day.

Helping to give CASBF stock a boost on the day is news about its Covid-19 vaccine. Local authorities gave the thumbs up to the world’s first approved inhaled Covid-19 vaccine. This also comes as Beijing is looking to relax its zero-Covid policy.

Now 13 cities in the Jiangsu province are ready to roll out the new vaccine after Shanghai authorities gave it the go-ahead last month in its city. Experts are hoping this might encourage the vaccine-wary population to get vaccinated.

As reported by the Financial Times: “Proponents of the technology argue the delivery method could improve protection as it produces an immune response in the respiratory system, where the virus first enters the body.” Further, Jin Dong-Yan, a virologist at the University of Hong Kong, said CanSino’s approval was “a step in the right direction” as the data suggest it better protects patients versus the inactivated vaccine technology used by other Chinese vaccine producers.

Breaking Down CASBF Stock

The company is based in Tianjin, China, and commands a market capitalization of roughly $8.8 billion. However, it isn’t very well-known among U.S. investors. When it comes to vaccine stocks — particularly related to Covid-19 — they are more familiar with Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA).

That said, it’s hard to ignore a rally to this degree. That’s particularly true if the company can gain sustained momentum with its vaccine.

There has been waning demand for the Covid-19 vaccines, which is no surprise given how long they have been available now. As a result, several vaccine companies will look to raise their prices — some up to four times the current price.

With CanSino and China, it’s not quite as straightforward as that. With today’s move, CASBF stock is now up more than 200% in just a couple of weeks. However, the stock is sparsely traded, sometimes trading as little as a few hundred shares in a session. Sometimes it trades zero shares. As of 2:00 p.m. Eastern on Wednesday, CASBF stock has changed hands more than 21,000 times. While minuscule by most standards, it’s the stock’s highest-volume session since September 2021.

With that in mind, the liquidity situation is certainly a concern. When combined with its status as a Chinese vaccine maker, it has me considering this a highly speculative investment regardless of its potential.

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On the date of publication, Bret Kenwell 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.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.


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