Don’t Buy Any Covid-19 Vaccine Stocks Until You Read This
Dear Wall Street Daily Reader,
With shares of Novavax, Inc. (NVAX) doubling during the last few weeks of January — and surging more than 3,000% over the last year — investors are on the lookout for the next Covid-19 vaccine stock set to soar.
I don’t blame them. But it’s no easy task.
Case in point: according to the latest data from www.ClinicalTrials.gov, there are currently 4,636 Covid-19 treatments and trials underway. That’s up by 376 trials since I last checked… which was the day before!
Sorting through all those trials quickly enough to identify any actionable opportunities might seem like mission impossible.
But today, I’m going to help you do exactly that. All you need to do is insist on one increasingly critical criterion — because it immediately eliminates 99.8% of those trials.
That’s right. With a single filter, we can whittle down a daunting list of 4,636 potential vaccine opportunities (and counting) to a manageable list of 10 or less.
If you’ve been paying attention to the news lately, you’ll know that a fresh fear is gripping the markets.
No, I’m not talking about the Reddit army looking to squeeze every asset imaginable, which I spoke about on Fox Business last week.
I’m talking about the nasty variants of Covid-19 that are popping up and spreading across the globe.
Why the panic? Because the variants are exposing a major weakness of most of the vaccines. This weakness is easy to explain with the help of the picture of the Covid-19 virus below.
You see, what you might not realize is that every vaccine in development or being administered focuses on just one way of fighting the virus. To create an immune response to fight the virus, they focus on a single spike protein.
But here’s the thing: research has shown that 50% of antibodies associated with fighting off the Covid-19 virus are non-spike ones. That means that almost every vaccine maker is ignoring up to 50% of what creates a successful immune response to clear the virus.
Making matters worse, since they only target a single spike protein, they’re not nearly as effective in treating mutations.
The first approved vaccines boasted 90%+ effectiveness in treating the original Covid-19 strain.
But now consider this:
- Johnson & Johnson’s (JNJ) vaccine is only 57% effective at preventing the South African variant, known as B.1.351.
- Novavax Inc.’s (NVAX) vaccine is only 49% effective against the same variant.
- Meanwhile, scientists from the Aaron Diamond AIDS Research Center at Columbia Universityfound that Pfizer Inc.’s (PFE) and Moderna Inc.’s (MRNA) vaccines were 6.5 to 8.6-fold less potent against the South African mutation.
In other words, a “mutational drift” in efficacy is only going to get worse and worse for spike protein-based vaccines, as the virus continues to mutate.
But therein lies the key…
Deficiency Creates Opportunity
By focusing our attention on companies developing multi-target vaccines that combine both spike and non-spike antibodies, we can uncover unspoiled Covid-19 investment opportunities.
The good news is that the list of non-spike Covid-19 vaccine companies is much smaller.
In fact, simply by adding in the search criterion of “non-spike” at www.ClinicalTrials.gov, the list virtually disappears, shrinking down to three.
To be fair, the government database isn’t exhaustive. It only focuses on vaccines that are currently in clinical trials (Phase 1, 2 or 3).
That means it doesn’t include pre-clinical trials, where many of the non-spike focused Covid-19 therapies currently exist.
Like Gritstone Oncology, Inc. (GRTS), for example.
On January 19 and 20, the company announced partnerships to create and advance a non-spike focused Covid-19 treatment.
What happened next couldn’t be more instructive: shares soared more than 400%.
Add it all up and Gritstone serves to underscore the massive profit opportunity in Covid-19 vaccines involving non-spike antibodies.
So if you’re looking to profit from this trend, I suggest you start your search there.
Ahead of the tape,
Editor and Founder, Trend Trader Daily