The pharmaceutical sector in general has had a rough ride over the past year.
The likelihood of Democratic candidate Hillary Clinton becoming the next president has created concern that the revenue and profits of biotechnology pharmaceutical companies could suffer.
Shares of the iShares Nasdaq Biotechnology Index Fund (IBB) have fallen off a cliff as the election has drawn near.
There is a lot of selling going on that isn't related to the performance of the underlying companies.
Within this sector, VBI Vaccines (VBIV) is worth a closer look. Although the company's share price has fallen in recent weeks along with the other companies in its sector, its business prospects have improved and perhaps significantly so.
VBI Vaccines is readying its Hepatitis vaccine, Sci-B-Vac, for release into Europe and the U.S. It is important to note that this isn't just a pipeline vaccine but one that is already approved and in use in 15 different countries.
That greatly reduces the risk involved with the vaccine.
Sci-B-Vac came to VBI Vaccines as part of the merger with SciVac. The specific reason for this merger was to get the drug into the hands of a company with the financial means and infrastructure to get Sci-B-Vac into these larger markets.
Sci-B-Vac is proven to be 100% effective and 100% safe, and it has been used by more than 300,000 individual patients in Israel. VBI Vaccines now has to tap into the European and North American markets by compiling the regulatory submissions for Phase III trials.
The company is in the process of doing that.
Sci-B-Vac has a significant advantage over the standard of care Hep-B vaccine in how well it works for patients over 40. The efficacy of the standard of care for older patients is dramatically reduced.