Shares of Heat Biologics (HTBX) surges today on speculation that there may be government funding for their COVID-19 coronavirus vaaccine. There has been promising testing results from animals.
On Wednesday, Morrisville-based Heat Biologics (HTBX) announced that “successful pre-clinical testing” of the company’s vaccine for Covid-19 demonstrated ” in-vivo confirmation of vaccine immunogenicity in animal models” including the expansion of a T-cell response against the virus.
The company said the testing demonstrated that the response killed virus cells in the lungs of animals. The company has also been working to develop its vaccine alongside a test for the virus as well. It is just one of many companies in the Triangle working on a therapeutic, vaccine or other research related to Covid-19.
While Heat is well behind the leaders in the race to develop a COVID-19 vaccine, these positive preclinical data could open the door for a lucrative collaboration with a big-name pharma or perhaps a sizable government grant. The U.S. federal government has been extremely generous in terms of funding when it comes to developmental-stage coronavirus vaccines in general.
Is Heat Biologics (HTBX) a reliable investment?
Is Heat’s stock a worthwhile buy on this news? Under normal circumstances, preclinical data wouldn’t exactly be a material event in the life of a biotech company. Preclinical data frequently don’t pan out in human trials, after all.
However, the fact that Heat might now be in line for a large cash infusion from the U.S. government changes the situation entirely. Aggressive investors, in turn, might want to consider opening a small position in this emerging coronavirus play soon.
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