Please ensure Javascript is enabled for purposes of website accessibility

Why Altimmune Stock Is Perking Up Today

By George Budwell – Oct 13, 2020 at 8:18AM

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

A preprint is sending the biotech's shares higher today.

What happened

Shares of the developmental stage biotech Altimmune (ALT 1.19%) jumped by as much as 17.8% in pre-market trading Tuesday morning. The biotech's shares are perking up this morning in response to the pre-publication of an animal study for its intranasal COVID-19 vaccine candidate known as AdCOVID.

The manuscript is currently available on the pre-print biology server BioRxiv.org. Altimmune is developing AdCOVID in conjunction with the University of Alabama at Birmingham. 

Up close image of the novel coronavirus.

Image source: Getty Images.

So what

Altimmune believes AdCOVID could sport several key advantages over the vast array of other COVID-19 vaccines in development. Beyond its unique intranasal administration, the company has designed AdCOVID to be effective in a single dose, to illicit a broad immune response, and to able to be shipped and stored without extensive protocols.

The big deal is that a safe and effective COVID-19 vaccine -- especially one that can be shipped globally with ease -- could be an enormous revenue generator. So while Altimmune is well behind the leaders in the COVID-19 vaccine race, its novel vaccine candidate may indeed be worth keeping tabs on. 

Now what

Altimmune plans to file the regulatory paperwork and subsequently begin human trials with AdCOVID in the fourth quarter of 2020. If all goes well, the company may have a shot at bringing this intranasal vaccine to market by 2022.

The bad news is that there will more than likely be multiple COVID-19 vaccines on the market before the end of 2021. That doesn't mean AdCOVID won't be able to carve out a profitable niche, but it will probably face some rather tough competition, to put it mildly. 

George Budwell 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

Altimmune, Inc. Stock Quote
Altimmune, Inc.
ALT
$12.77 (1.19%) $0.15

*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
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

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.