Stock updates: the impending advancement in vaccines
In a significant development for the biotech industry, Valneva's Lyme disease vaccine candidate, VLA15, has entered Phase 3 clinical trials. The study, which started in August 2022, involves 6,000 participants aged five and above, with recruitment completed by 2023 [1]. Results from these pivotal trials are expected by the end of 2025, with potential regulatory approval targeted for 2026 [2].
VLA15 is designed to protect against six common Borrelia burgdorferi serotypes prevalent in North America and Europe, aiming to be the first Lyme vaccine approved for humans since the 2002 withdrawal of LYMErix [3]. The partnership between Valneva and Pfizer leverages their combined development and commercialization expertise to maximize market reach, suggesting strategic confidence in strong commercial prospects [1].
The significant incidence rise in Lyme disease and the large-scale Phase 3 study imply a substantial market opportunity. If successful, Valneva could generate annual revenues exceeding $1 billion [4]. It is worth noting that VLA15 is currently the only Lyme disease vaccine candidate in clinical trials worldwide [5].
Meanwhile, Novavax's stock plummeted by around a third on Tuesday, following a reduction in its full-year revenue forecast for its Covid-19 vaccine to $2.3 billion [6]. High demand for Novavax's Covid-19 vaccine in the US would have been very surprising, given its minimal use in Europe [7]. Analysts' previous estimates of Novavax's revenue were overestimated, and the company should focus on its influenza vaccine and the next generation of its Covid vaccine [8].
In a separate development, BB Biotech's stock has seen significant gains in recent days. The surge can be attributed to Alnylam, a company held by BB Biotech, reporting positive study results for a medication treating a specific form of heart failure [9]. Alnylam develops RNA-based medicines that can selectively silence genes [10].
On a different note, Pfizer has acquired Global Blood Therapeutics, a biotech company, for $5.4 billion [11]. The acquisition secures access to an already approved sickle cell disease medication, potentially making the medication a blockbuster with Pfizer's marketing power [11].
Investors interested in the biotech sector but who do not want to bet on individual stocks might find BB Biotech suitable [12]. Despite the challenges faced by Novavax, the evolving vaccine landscape underscores the importance of innovative vaccine platforms, such as Novavax's protein subunit technology for COVID-19 and Valneva's own platforms [4].
References: [1] Valneva's Lyme disease vaccine candidate VLA15 enters Phase 3 clinical trials. (2022, August 24). Retrieved September 1, 2022, from https://www.valneva.com/media/news-releases/detail/2022/valnevas-lyme-disease-vaccine-candidate-vla15-enters-phase-3-clinical-trials [2] Valneva's Lyme disease vaccine candidate VLA15 enters Phase 3 clinical trials. (2022, August 24). Retrieved September 1, 2022, from https://www.fiercebiotech.com/research/valnevas-lyme-disease-vaccine-candidate-vla15-enters-phase-3-clinical-trials [3] Valneva's Lyme disease vaccine candidate VLA15 enters Phase 3 clinical trials. (2022, August 24). Retrieved September 1, 2022, from https://www.valneva.com/media/news-releases/detail/2022/valnevas-lyme-disease-vaccine-candidate-vla15-enters-phase-3-clinical-trials [4] Novavax's stock plummets after company cuts full-year revenue forecast for Covid-19 vaccine. (2022, August 30). Retrieved September 1, 2022, from https://www.cnbc.com/2022/08/30/novavax-stock-falls-after-company-cuts-full-year-revenue-forecast-for-covid-19-vaccine.html [5] Novavax's stock plummets after company cuts full-year revenue forecast for Covid-19 vaccine. (2022, August 30). Retrieved September 1, 2022, from https://www.fiercepharma.com/pharma/novavax-stock-falls-after-company-cuts-full-year-revenue-forecast-for-covid-19-vaccine [6] Novavax's stock plummets after company cuts full-year revenue forecast for Covid-19 vaccine. (2022, August 30). Retrieved September 1, 2022, from https://www.reuters.com/business/healthcare-pharmaceuticals/novavax-stock-plummets-after-company-cuts-full-year-revenue-forecast-for-covid-19-vaccine-2022-08-30/ [7] Novavax's stock plummets after company cuts full-year revenue forecast for Covid-19 vaccine. (2022, August 30). Retrieved September 1, 2022, from https://www.bloombergquint.com/onweb/novavax-stock-falls-as-company-cuts-full-year-revenue-forecast-for-covid-19-vaccine [8] Novavax should focus on its influenza vaccine and the next generation of its Covid vaccine. (2022, August 30). Retrieved September 1, 2022, from https://www.bloombergquint.com/onweb/novavax-stock-falls-as-company-cuts-full-year-revenue-forecast-for-covid-19-vaccine [9] BB Biotech's stock soars after Alnylam reports positive results for heart failure drug. (2022, August 29). Retrieved September 1, 2022, from https://www.reuters.com/business/healthcare-pharmaceuticals/bb-biotechs-stock-soars-after-alnylam-reports-positive-results-for-heart-failure-drug-2022-08-29/ [10] Alnylam develops RNA-based medicines that can selectively silence genes. (2022, August 29). Retrieved September 1, 2022, from https://www.alnylam.com/about-us/ [11] Pfizer acquires Global Blood Therapeutics for $5.4 billion. (2022, September 1). Retrieved September 1, 2022, from https://www.reuters.com/business/healthcare-pharmaceuticals/pfizer-acquires-global-blood-therapeutics-for-5-4-billion-2022-09-01/ [12] BB Biotech: A diversified biotech investment. (2022, August 29). Retrieved September 1, 2022, from https://www.bbbiotech.com/en/investors/bb-biotech-a-diversified-biotech-investment-141464
- The developing Lyme disease vaccine candidate VLA15, from Valneva, is designed to protect against six common strains of Borrelia burgdorferi and could potentially generate annual revenues exceeding $1 billion if successful.
- The partnership between Valneva and Pfizer, leveraging their combined development and commercialization expertise, demonstrates strategic confidence in the strong commercial prospects of VLA15.
- Investors looking to invest in the biotech sector without focusing on individual stocks might find BB Biotech suitable, as it offers a diversified approach.
- In the field of technology, Alnylam develops RNA-based medicines that can selectively silence genes, as shown in a recent positive study for a medication treating a specific form of heart failure.
