VXRT - Why Shares of Vaxart Plummeted 38.6% in May
The prospective coronavirus vaccine maker Vaxart (NASDAQ: VXRT) crashed by 38.6% in May, according to data provided by S&P Global Market Intelligence . The tumble was caused by the company's publication of new data about its coronavirus vaccine pill on May 3, which failed to show high levels of neutralizing antibodies in a clinical trial despite showing other signals of immune system activation.
Vaxart's coronavirus candidate had shown the same weaknesses in prior data readouts in February, meaning that the latest results served to cement investors' low expectations for its efficacy. Given that competitors like Pfizer and Moderna have both successfully marketed coronavirus vaccines which generate strong antibody responses, it's unlikely that Vaxart's program has much of a future. So far, the company appears to be continuing with development as before in hopes of finding a niche in the market. While it may eventually find that niche in the form of healthcare systems in developing countries, it probably won't be competitive in the most lucrative developed markets like the U.S.
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Why Shares of Vaxart Plummeted 38.6% in May