Investing in Vaccine Technologies of the Future
Vaccines have historically been less profitable than therapeutic products. For many years the pharmaceutical industry poured far more research money into treating disease than in preventing it. That may have made sense in the “old days” when the cost of healthcare was not of serious concern. In light of the worldwide recession and rising healthcare costs, investment in vaccine technologies is looking more attractive.
Which are the companies are best positioned to benefit from this shift in thinking about healthcare costs and the value of preventative medicine? The big vaccine companies will probably do well, but the impact of new vaccines on their share prices may be slow and unimpressive. There are two vaccine technology companies that may appeal to investors with high risk for high reward in mind.
First, consider Novavax, Inc (Nasdaq: NVAX). This company is using something called “virus-like particle (VLP)” technology to create new vaccines. VLP technology involves making an artificial virus structure without the functional portion of the virus. When a VLP vaccine is injected into your arm, your immune system thinks it is being invaded by the real virus and produces a defensive reaction. The theory is that VLP vaccines will be more potent than simpler types of vaccine formulations. If NVAX is successful in commercializing its theories, its market value could be far above its current figure below one hundred million dollars.
Secondly, take a look at iBioPharma Inc (OTCBB:IBPM). This company is planning to use green plants to manufacture innovative vaccines for serious infectious diseases including anthrax, plague, and pandemic swine flu. IPBM’s green plant vaccine production technology not only reduces the cost of complex vaccine products, but also speeds up their production. Speed may be important when flu strain mutations produce deadly new types of influenza, or if an outbreak were to occur with little or no warning. This company has a total market value well below ten million dollars, a number that is sure to rise as its products and technology become better known.
This article’s author does not own stock in either of the companies discussed herein. This article is intended for educational purposes only and is not a recommendation to buy or sell securities in any specific industry or company.