The Covid vaccine multi-bagger investment ended over a year ago. After the virus mutated to a less deadly strain, countries lifted lockdowns and business returned to normal.
Novavax (NVAX) is the biggest failure. During the pandemic, it failed to release a product. It led investors astray by touting its science. Positive clinical results boosted the stock. In Q4/2022, Novavax’s turning point toward irrelevancy accelerated. It reported its net loss narrowed to $182.2 million, or $2.28 a share.
Novavax has only $1.3 billion left in cash, down by 12% from a year ago. The firm does not have a product to pivot its business.
Intellia (NTLA) is an entirely different business in biotech. The firm develops treatments by leveraging CRISPR-based technologies. Despite losing $1.40 a share on revenue of just $13.6 million, it has a strong financial position. Its cash position rose to $1.3 billion as of Dec. 31, 2022, compared to $1.1 billion as of Dec. 31, 2021.
The Food and Drug Administration cleared its application for NTLA-2002. Intellia may start its trial on a CRISPR-based gene editing therapy to treat hereditary angioedema.
Investors should wind down investments in vaccine developers. Biotech companies will resume their efforts in gene therapy. NTLA stock is a good place for investors to start.
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