Please ensure Javascript is enabled for purposes of website accessibility

Why VBI Vaccines Stock Is Skyrocketing Today

By Keith Speights – Updated Jun 26, 2020 at 11:55AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Momentum continued from an upgrade and investors' attraction to stocks with COVID-19 programs.

What happened

Shares of VBI Vaccines (VBIV -0.95%) were skyrocketing 24.4% as of 11:53 a.m. EDT on Friday. The drugmaker didn't announce any news, but there appeared to be three factors potentially driving VBI's shares higher.

VBI Vaccines was upgraded to a strong buy by investment research firm Zacks on Wednesday. The stock rose more than 7% on Thursday.

But the gains on Thursday and today also seem to be fueled by worries about the rise in the number of COVID-19 cases in the U.S. These concerns have made the stocks of companies with coronavirus programs attractive picks for investors.

It's also possible that the meteoric gains today for Vaxart are drawing investors' attention to stocks of other companies such as VBI that are developing COVID-19 vaccines.

Healthcare professional holding a syringe and vaccine bottle

Image source: Getty Images.

So what

There's an old saying that a rising tide lifts all boats. That's probably what we've seen this week for VBI Vaccines, as small biotech stocks focused on COVID-19 have risen as a result of worrisome trends in coronavirus cases. But it's still smart to check out the condition of a boat before getting into it.

VBI can legitimately claim to be a commercial-stage biopharmaceutical company because its hepatitis B vaccine Sci-B-Vac is approved in Israel. For now, though, sales aren't anything to get excited about. 

It also seems way too early to get overly excited about VBI's COVID-19 program. The company is developing a vaccine that targets multiple coronaviruses, including COVID-19 as well as SARS and MERS. But this vaccine candidate is only in pre-clinical testing.

What could be exciting for investors with VBI Vaccines, though, is the commercial potential for Sci-B-Vac in North American and European markets. The company also has promising pipeline candidates, notably the experimental cancer vaccine VBI-1901.

Now what

The most important thing to watch with VBI Vaccines is its planned regulatory filings in the U.S., Canada, and Europe for Sci-B-Vac beginning in the fourth quarter of this year. The company should also report initial results from its phase 2a study of VBI-1901 in Q4. 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

VBI Vaccines Inc. Stock Quote
VBI Vaccines Inc.
VBIV
$0.73 (-0.95%) $0.01
Vaxart, Inc. Stock Quote
Vaxart, Inc.
VXRT
$2.10 (-3.67%) $0.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.