Vaxart: a Lot of Risk, but Upside Is Huge

 The coronavirus pandemic put Vaxart's ( VXRT -6.41% ) name on the map. That's because this biotech company jumped into the vaccine race early on. The company's program hasn't yet reached the finish line though. Vaxart's candidate still is in phase 2 trials. The company aims to report data from the study in the first quarter of this year.

Of course, Vaxart's candidate -- if successful -- will arrive late. Rivals already have vaccinated a big part of the population. But that might not matter. Here's why. Vaxart's potential product is an oral vaccine. It's a tablet to be taken with a glass of water. This could make Vaxart popular with patients and healthcare providers. Many patients would love the idea of a vaccine without a needle stick. And providers will appreciate the ease of transporting and storing a pill versus a traditional vaccine that requires cool temperatures. So, Vaxart may carve out market share as people return for boosters. And such doses may be needed over the long term. Experts say the coronavirus will stick around. That means people will continue to need vaccines as protection.

Vaxart also is working on oral vaccine candidates for seasonal flu, respiratory syncytial virus, and human papillomavirus. The seasonal flu candidate is in phase 2 studies. So, between the coronavirus and the flu candidates, Vaxart may have the opportunity to bring a product to market in the next few years.

Vaxart is risky because it hasn't yet brought an oral vaccine to market. And failure can happen at any point during clinical trials -- even in late-stage studies. This situation is the same for all clinical stage biotech companies. But in the case of Vaxart, if it succeeds and commercializes oral vaccines, we could be talking about blockbuster future revenue -- and major share gains.

https://www.fool.com/investing/2022/02/23/these-2-stocks-carry-risk-but-their-upside-is-big/