Why Shares of VBI Vaccines Soared, and Then Fell 7%, on Tuesday

Seemingly good news from VBI Vaccines (NASDAQ: VBIV) quickly turned into trouble for shareholders during Tuesday's trading. Shares of the biopharma developer opened higher following news that its COVID-19 vaccine VBI-2902a showed measurable effectiveness in phase 1 testing, and at one point were up as much as 7.5%. As of the end today's session, however, the stock was down 7.2% as at least some investors saw the strength as a selling opportunity.

Although COVID-19 vaccines from multiple pharma companies are available and now being widely administered, most are proving at least partially ineffective against newer strains of the virus. VBI Vaccines' work with VBI-2902a is promising in that the eVLP (enveloped virus-like particle) solution may readily target known as well as emerging strains. The drug is being tested as part of what's described as an adaptive phase 1/2 clinical, which allow for mid-trial adjustments rather than forcing outright restarts of testing when such adjustments can be safely made.

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Source Fool.com