8 Pharmaceutical Companies Racing for a Vaccine

These companies have promising leads for the holy grail: a vaccine.

The only way to win the war against the pandemic for good is to find a cure for the coronavirus, and pharmaceutical companies around the world know that if they can produce a viable vaccine, then they (and their shareholders) will profit. The only question is: which pharmaceutical company will come up with a cure first? Experts say that a vaccine could take at least 12 to 18 months to reach the public, which means there’s plenty of time for investors to make the wrong pick. However, here are some clear front-runners that you should keep your eye on, from global pharma giants to innovative newcomers.

Moderna (ticker: MRNA)

The early lead in the vaccine race went to Moderna — shares skyrocketed in late February when the company announced it would be working on a vaccine alongside the National Institute of Allergy and Infectious Diseases. In an incredibly quick turnaround, Moderna began phase one trials on March 16, injecting 45 healthy adults with 250 mcg of its vaccine — now all that’s left to do is wait for the results. In the meantime, hopes are high enough for this vaccine that the Biomedical Advanced Research and Development Authority just awarded Moderna $483 million in funding to speed the development of the vaccine. If the U.S. Health and Human Services department is putting its money on Moderna, maybe investors should as well.

Inovio Pharmaceuticals (INO)

While Moderna uses messenger RNA to develop its vaccines, Inovio utilizes DNA in much the same way. In fact, according to CEO Joseph Kim, once researchers in China had isolated the genetic sequence of COVID-19 in January, Inovio took that information and used genetic sequencing technology to design its vaccine within three hours. The rapid turnaround from sequencing to vaccine design provides a powerful illustration of the advantages Inovio and Moderna may have for developing cures to future pandemics, advantages investors can turn into profit. But in the meantime, Inovio began phase one clinical trials with 40 volunteers on April 6 and has high hopes it can win this race thanks to its experience developing a vaccine for Middle Eastern Respiratory Syndrome (MERS).

Novavax (NVAX)

Novavax had several vaccines it believed could be used to battle coronavirus, but on April 8, the company announced that one, NVX-CoV2373, was particularly adept at helping animal test subjects develop antibodies against coronavirus after only a single dose. Novavax is moving ahead with its next phase of testing: beginning human trials in May, aiming for results that will be ready by July. To help the small-cap company out, Novavax has partnered with Emergent BioSolutions (EBS) to roll out the vaccine should it prove viable; in addition, the Coalition for Epidemic Preparedness Innovations has awarded Novavax with $4 million in funding to support the company’s efforts. But first, Novavax needs to prove its vaccine works on humans.

Gilead Sciences (GILD)

Gilead Sciences may be a step ahead of the competition thanks to its phase three antiviral remdesivir. While remdesivir was originally designed to treat Ebola, it has quickly become the front-runner among drugs that could also treat the new disease, especially after a World Health Organization official said it was “the one drug right now that we think may have efficacy.” In the last few weeks, remdesivir has become the subject of multiple clinical trials, and early findings are very promising. In results published in The New England Journal of Medicine on April 10, 84% of the 53 patients in a compassionate-use trial saw clinical improvement. And on April 16, leaked video reportedly showed medical professionals discussing how 125 patients afflicted with coronavirus and given daily infusions of remdesivir showed most patients had a rapid recovery and were discharged from the hospital.

Johnson & Johnson (JNJ)

In late March, pharmaceutical giant Johnson & Johnson announced that its vaccine would be ready for human testing by September, and it could be available to the public by early 2021. While that puts Johnson & Johnson a step behind its smaller, more nimble competition, the company is using its size to close the gap. Along with its vaccine update, Johnson & Johnson announced that it had struck a $1 billion deal with the U.S. government to ramp up its capacity for manufacturing a vaccine, expanding its current manufacturing facilities and building a new one in the U.S. The goal is for Johnson & Johnson to be able to produce 1 billion doses of a vaccine in short order, setting the company up to profit even if someone else ultimately creates a cure.

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