Vaxart is a biotech company. It develops oral vaccines that can be stored and shipped without refrigeration, and used without needles. Vaxart vaccine against COVID-19 is the only oral vaccine with clinical data including T-cell response and mucosal response.

If the company can get FDA approval for its oral Covid vaccine, it will vaccinate 19 million Americans who don’t want to get the vaccine through a needle. 70% of Americans prefer to take a pill rather than injecting it through a needle. If all COVID vaccines were in pill form, vaccinations could be made much faster because pills can be mailed to everyone, instead of people going to vaccination points. Also, the process is cheaper because one doesn’t have to pay the medical staff to inject people.

In total, it is necessary to go through 3 phases of clinical trials before submitting a new drug for approval to the American FDA and, if approved, begin widespread sales. Vaxart has 1 of 2 COVID-19 vaccines and 1 norovirus vaccine in phase 1 trials. The second covid vaccine and a seasonal flu vaccine are in phase 2 studies.

Naturally, the company has little revenue, no net profit and negative free cash flow, since all the money goes to R&D – research and development of vaccines. We will give the current multipliers as an introduction, since Vaxart does not even make much sense in them:

P / E and forward P / E are not considered as the company has a loss

P / B 4.1

P / S 669

Debt $ 12.7 million with operating cash flow minus $ 54.7 million

No dividends

Share Price: $ 6.99

At the same time, the company is well capitalized, it has more than $ 100 million in its accounts. The money raised will be enough for 2-3 years, taking into account the fact that Voxart needs to spend an average of $ 60 million a year.

Shares are traded slightly above 20 and 50-day moving averages and below 200-day MA. The image shows a strong resistance line that has been stretching since last July. If penetrated and stabilized, the rate may go to around $ 12-13. Otherwise, it would go down to $5.

Conclusion: Covid pills instead of injections would be a real breakthrough. But only a small percentage of drugs get FDA approval. However, even if the company gets approval for at least one drug or vaccine, it will bring significant income and profits, the stock could grow 10 times, becoming a new Moderna. We believe that such companies should be taken in bulk in ETFs, since any of them can take off, and most will still go bankrupt when investors get tired of waiting for the result. But if you have such companies as Vaxart individually in your portfolio, then no more than 1%.

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