Novavax (NVAX -2.51%) and Vaxart (VXRT -3.16%) posted increases of more than 2,000% and 1,000% respectively last year. But there may be reasons for these biotech companies to extend their gains in 2021. In this Motley Fool Live video recorded on Jan. 22, 2021, healthcare and cannabis bureau chief Corinne Cardina and Fool.com contributor Adria Cimino discuss the share potential of both of these companies.
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Corinne Cardina: With the pandemic having gone on for a year, and like you mentioned with Novavax, a lot of these stocks have run up so much over the past 12 months. A big point of analysis for investors is valuation. How much of expected success is already baked in, and are there major catalyst in the future that could reward investors who buy at this price? Of course, we talked about Novavax, it was like the second highest flier of 2020, is it too frothy at this price?
Adria Cimino: I think there still is room for share gains, but slower and steady over time. As I mentioned, we're not going to get that 2000% again in one year. But I think over time. Earnings per share estimates for the fiscal year are coming in at the idea of about $21 per share. That's from company that was at losses per share in previous years. I think that with the hopes of the vaccine and the idea of flu vaccine, these can all be something to bet on for longer-term. I also have another one that I want to talk about -- Vaxart -- and that's another big gain last year. They gained more than 1,000%. Vaxart has been working on a tablet form vaccine which is interesting because for people who don't like getting shots, that's pretty good. And also it's room temperature stable, so the idea of cold chain storage and transport, you don't have to worry about. It could be a very interesting product. Now, we're waiting for phase 1 data so it's much earlier stage, so it is riskier bet. Also, it's smaller market cap -- it's $720 million. So, there's definitely room for growth for this stock. It's just that it's going to be a riskier one.
