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Icosavax (ICVX) Up on Positive VLP Vaccine Candidate Data

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Icosavax  announced positive interim data from its early-stage study of IVX-A12 for a respiratory syncytial virus (RSV) and human metapneumovirus (hMPV) vaccine in older adults. Shares of the company surged almost 25% following the news.

Icosavax shares went up 23.7% year to date against the industry’s 6.2% decline.

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ICVX specializes in vaccine development using an innovative technology called virus-like particles (VLP). The phase I study is focused on evaluating the safety and effectiveness of IVX-A12 at different dosage levels and ratios of vaccine components.

The candidate is a combination vaccine, made up of IVX-121 and IVX-241, targeting RSV and hMPV, respectively. 

The initial findings from the phase I study demonstrated robust immune responses in older adults, lasting up to 28 days post vaccination. The study involved 140 healthy individuals aged between 60 and 75 years.

IVX-A12 was well tolerated by all dosage groups, with only mild or moderate adverse events reported. The candidate received a Fast Track designation from the FDA in February 2023. 

Previous studies showed that using prefusion F antigens, a specific type of protein, for RSV vaccines can offer significant protection against pneumonia. Icosavax believes that its VLP technology, combined with the prefusion F antigens for both hMPV and RSV, could provide substantial protection against the leading causes of the disease.

Based on the promising interim results, ICVX is determined to advance IVX-A12 quickly. The company plans to move into a phase II study in mid-2023, specifically focusing on older adults. It also intends to conduct a human challenge clinical study to further evaluate the preventive capabilities of IVX-A12 against hMPV.

By leveraging its innovative VLP technology, Icosavax aims to develop a pan-respiratory vaccine that offers comprehensive protection against these life-threatening illnesses.

The company also announced a $67.8 million direct offering of common stock. The offering involves buying ICVX shares at $8.10 per unit and is expected to close by May 25, 2023.

The company has other developmental candidates for influenza and severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).

Zacks Rank and Stocks to Consider

Currently, Icosavax carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector are ADMA Biologics (ADMA - Free Report) , Allogene Therapeutics (ALLO - Free Report) and Omega Therapeutics (OMGA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Loss per estimates for ADMA have narrowed from 19 cents to 9 cents for 2023 in the past 60 days. Shares of ADMA have risen 3.6% in the year-to-date period.

ADMA Biologics’ earnings beat estimates in three of the trailing four quarters and met the mark in one, delivering an average surprise of 19.3%. 

Loss per share estimates for Allogene have narrowed from $2.45 to $2.32 for 2023 and from $2.48 to $2.21 for 2024 in the past 60 days. Shares of ALLO have declined 3.8% in the year-to-date period. 

Allogene’s earnings beat estimates in three of the last four quarters and missed the mark in one, the average surprise being 5.08%.

Loss per share estimates for Omega have narrowed from $2.51 to $2.18 for 2023 and from $2.57 to $2.22 for 2024 in the past 60 days. Shares of OMGA have surged 69.1% year to date. 

Omega’s earnings outpaced estimates in two of the last four quarters, missed the mark in one, and met in another, delivering an average surprise of 8.24%.


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