After months of uncertainty, it looks like the biotech industry is finally ready to rack up some profits.
Last year, a political spotlight on drug pricing policies threatened the entire industry. Scandals at Mylan (MYL - Get Report) and Valeant Therapeutics (VRX) did damage to the entire sector, sending the share prices of many biotech companies down. And the prospect of having Hillary Clinton - who became one of the industry's most outspoken critics during her campaign - in the White House, had many investors fleeing biotech stocks rather than facing four years of jitters.
Trump's surprise win, however, has paved a smoother path for biotech investors to profit. And although he has also decried high drug prices, Trump has promised a lot of benefits to the industry, including a smoother and faster FDA approval process and the potential for hefty tax cuts.
It's time for investors to start making their way back into biotech stocks, and few pockets of this industry offer the potential that vaccine makers do.
The market for vaccines continues to grow, spurred on by rapidly developing and industrialized populations, as well as high-profile disease epidemics like Zika. In 2016, sales of vaccines across the globe increased by more than 6% year over year, to more than $11.5 billion.
But what's the best vaccine investment for your money?
While Big Pharma giants like Pfizer (PFE - Get Report) , Merck (MRK - Get Report) , and GlaxoSmithKline (GSK - Get Report) are developing blockbuster vaccines of their own, the smart money know that some of the biggest profits can come from smaller stocks. After all, not only is there more room for growth in the business and its stock, but these smaller morsels look pretty tempting and tasty when it comes to acquisitions.
The company is unique in that it uses its own proprietary technology for its vaccines. Called "enveloped virus-like particle" (VLP) technology, this mimics how viruses navigate the body's systems for more efficient and effective delivery.
VBI's current pipeline includes vaccines for hepatitis B and the cytomegalovirus that are either in or close to Phase III trials.
Back in December, VBI Vaccines raised a hefty $23.6 million thanks to a stock-and-debt transaction with Perceptive Advisors, the top-performing hedge fund of 2015. This cash should see the company clear through fiscal 2018 and demonstrates Perceptive Advisors' trust in this company to be a solid performer.
The company has other big-name backers, too: Robert Nelsen's Arch Ventures and Dr. Phillip Frost's Opko Health (OPK - Get Report) both own sizeable stakes in the company. In fact, much of VBI's stock - 54.5%, in fact - is owned by corporate insiders.
While all biotech stocks- and especially smaller ones - are not without risk, for investors who don't mind a bit of a roller-coaster ride, VBI Vaccines makes an intriguing play for your portfolio. The consensus is expecting VBI's shares to hit $8.50 in the next 12 months. As the stock is currently trading around $4.65 per share, that could significantly pad your wallet.
How should you play medical and other stocks in March? Here's what Jim Cramer and four of our top columnists recommend.
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