GlaxoSmithKline (GSK) £14.00

Gain to date: 6%
Original entry point: Buy at £13.21, 5 November 2020

Novacyt (NCYT:AIM) 870.2p

Gain to date: 37.7%
Original entry point: Buy at 632p, 8 October 2020

Although delays to vaccines are common, given the positive slew of positive news over the last few weeks the three-month delay to the possible market launch of the GlaxoSmithKline (GSK) vaccine candidate (in partnership with Sanofi) was unfortunate.

The two companies now plan a new study starting in February with an improved formulation which will include a comparison  with an authorized Covid-19 vaccine.

If the data from the trial is as hoped, a final trial will begin in the second quarter. Positive results from this trial would then lead to regulatory submissions in the second half of 2021, delaying the vaccine’s potential availability from mid-year to the final quarter.

Importantly there are no significant financial implications attached to the delay.

In a more positive Covid-linked corporate development Novacyt (NCYT:AIM) added to its diagnostic capabilities with the launch of a test (14 Dec) for the mutation of the Covid-19 virus associated with Danish Minks. 

The mutation is of concern to scientists because it causes an amino acid change which affects antibody binding. The launch of the test puts Novacyt in a strong position should the need arise to differentiate the new strain.

SHARES SAYS: Despite somewhat divergent fortunes of late these are both still buys. 

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