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VBI Vaccines Could Nearly Triple In Value On New Drug Launches, According To BMO

Elizabeth Balboa

VBI Vaccines, Inc. - Ordinary Shares (NASDAQ: VBIV) will release results on three clinical trials in the first half of 2018, presenting certain investment opportunities of an uncertain nature.

Some on the Street predict Buy-worthy data — “free call options.”

The Rating

BMO Capital analyst Do Kim initiated coverage on VBIV with an Outperform rating and $11 price target.

The Thesis

Kim considers VBI’s Phase III hepatitis B vaccine, Sci-B-Vac, “largely de-risked” and at a commercial advantage over GlaxoSmithKline plc (ADR) (NYSE: GSK)’s clinically inferior Engerix-B and Dynavax Technologies Corporation (NASDAQ: DVAX)’s Heplisav-B, whose safety profile posed early regulatory concerns. (See Kim's track record here.) 

“We estimate WW peak sales of $677 million, with a 70 percent probability of success,” Kim said in a Wednesday note. 

VBI’s early stage pipeline could lend additional, unfactored upside, according to BMO.

Kim projects “a rapid clinical path” for the VBI-1901 glioblastoma candidate to drive global peak sales of $1.5 billion, while expected efficacy improvement in the Phase I congenital cytomegalovirus vaccine, VBI-1501A, could yield $2.2 billion, the analyst said. 

Price Action

BMO's positive rating — which echoes the sentiment of the two other research firms covering the stock — catalyzed a 6.7-percent spike. At the time of publication, shares were trading at $4.28, up 2.6 percent off the open.

Related Links:
Where Does Zika Virus Vaccine Research Stand Now?
Vaccine Business The Gateway To Drug Stores Providing Profitable Primary Healthcare

Photo courtesy of the FDA.

Latest Ratings for VBIV

Date Firm Action From To
Nov 2017 BMO Capital Initiates Coverage On Outperform
Nov 2017 Canaccord Genuity Initiates Coverage On Buy
Jul 2016 Ladenburg Thalmann Initiates Coverage on Buy

View More Analyst Ratings for VBIV
View the Latest Analyst Ratings

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