Heat Biologics Regains Momentum After This Big News
Over the course of the past few months, the coronavirus pandemic has wreaked havoc all over the world and until now no company has been able to come up with a vaccine for COVID-19. Hence, companies that are working on vaccines for the same have come into sharp focus in these times and seen their stocks soar.
On Tuesday, it was Heat Biologics Inc (NASDAQ:HTBX) stock that was the talk of the town after the company released positive data from the preclinical testing of its experimental coronavirus vaccine. After the news broke yesterday, investors soon piled on to the stock, and the Heat stock rallied by as much as 46% during morning trade.
Another Positive News
Considering the gains made by the stock yesterday, it could be worthwhile for investors to take a closer look at the company and its operations. The company announced yesterday that its experimental coronavirus vaccine demonstrated the ability to trigger the body’s immunity response, which is also known as immunogenicity, in a preclinical study. That being said, it should be noted by investors at the same time that the study in question was an animal study.
On the other hand, investors also need to keep in mind that at this point in time there are plenty of companies that are working on a coronavirus vaccine. Hence, Heat Biologics might have to play catch up with companies that are in more advanced stages of development.
All is not lost for Heat Biologics though even if it finds itself way behind some of the other companies. At the end of the day, encouraging preclinical data could be of interest to big pharmaceutical companies who might want to collaborate in the development process. On the other hand, the company might also receive a grant from the government if the data is suitably impressive. The latter option is particularly interesting since the United States Government has been quite generous with regards to funding projects which are focussed on coming up with a coronavirus vaccine.
Investors who are thinking whether to buy the stock or not might thing that preclinical data is not a particularly large milestone for a biotech company. Under normal circumstances, they will be right but in case of Heat Biologics, there is not a possibility of the company getting a substantial grant from the United States Government and that is something that could result in a rally in the stock.
There has been another important development with regards to Heat Biologics that should also be kept in mind by investors. Earlier this week, the company announced that in a letter dated July 24, 2020, from NASDAQ which indicated that the company had regained compliance with regards to the minimum $1 bid price rule.
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