The market for coronavirus vaccines will be enormous. That presents great opportunities for investors. But how should you move forward with going after those opportunities? In this Motley Fool Live video recorded on Nov. 16, 2020, Healthcare and Cannabis Bureau Chief Corinne Cardina and Fool.com writer Keith Speights talk about key tips for investing in COVID vaccine stocks.
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Corinne Cardina: Let's wrap up with something general for investors. Keith, what tips do you have for investors who might be thinking about buying stocks in the coronavirus vaccine landscape today? Are there any strategies that might be market beaters?
Keith Speights: First of all, I would say, "know thy own self." The old proverb there. Understand your own risk tolerance. If you're averse to risk, you're not going to want to jump on some of these smaller biotech stocks that don't have other proven candidates or other proven drugs on the market.
But I've mentioned Novavax (NVAX 2.52%). Novavax is one of those high-risk, high-reward-type stocks that if things go well, that stock could really take off. When I say take off, it wouldn't shock me for Novavax to shoot up 4 or 5 times. They're around $6 billion in market cap now. Compare that to say BioNTech (BNTX -1.45%) or Moderna (MRNA -1.82%) that are in the $20 and $30 billion range, so Novavax could be a huge winner if things go well. If their vaccine isn't successful, that stock is going to go down. That's one that I would really watch.
But I would also throw in some of these big ones. Pfizer (PFE 0.89%) has a lot of good things going forward. AstraZeneca (AZN 1.64%) has a lot of good things going forward other than their COVID-19 program. There other reasons to buy these stocks rather than just their coronavirus vaccines.
Corinne Cardina: That's a great point, and don't put all your eggs in one basket. It's important to make sure if you are investing in coronavirus vaccine stocks, dedicate a specific percentage and stick to what you plan. Don't get carried away and just start buying on every good news.
Speaking of Novavax, do we know when Novavax plans to release any data about the trial that they're currently in?
Keith Speights: I do know that they plan to release the U.K. phase three data early next year. They haven't been more specific than that. That's the latest that I've seen.
Corinne Cardina: Okay, cool. Novavax, are they waiting on a decision about their flu vaccine? Where are they on the flu vaccine?
Keith Speights: They have a very promising flu vaccine called NanoFlu. Basically, they've set up a team to advance the regulatory filing process for that vaccine. They do have to do a lot consistency trial first. They haven't set a date, but if I had to guess, I would say that sometime in 2021 they would be at a point where they could file for approval for that vaccine, and not emergency use authorization in that case, full FDA approval. Novavax has also said that they are exploring the possibility of combining their flu vaccine with their COVID-19 vaccine, which would be quite promising if they're able to do that.
Corinne Cardina: Wow, that is amazing, especially for those of us who don't love to pricked by needles.
Keith Speights: Exactly.
Corinne Cardina: You could do it all in one shot. Amazing. Awesome. Well, thank you so much, Keith.