If you were given the chance to choose, how would you prefer to get vaccinated against COVID-19: by getting an injection or by taking a pill?

For a lot of people, it’s a no-brainer to choose the pill—and one biotechnology company has been working hard to turn that into a reality: Vaxart (VXRT).

Last January 2020, Vaxart was only a micro-cap stock focused on developing a lineup of oral-tablet vaccines as treatments for viral infections.

When news broke that the company has been developing a COVID-19 vaccine in the form of a pill, its shares rocketed by over 1,250% in the past 12 months.

From a micro-cap stock trading for as little as $0.70 last year, Vaxart has been trading somewhere between $21 to $23 per share since 2021 started.

In fact, Vaxart even managed to outpace other biotechs already leading in the coronavirus market like Pfizer’s (PFE) partner BioNTech (BNTX), and Moderna (MRNA).

If Vaxart’s vaccine, VXA-CoV2-1, receives regulatory approval, then its COVID-19 vaccine candidate offers key advantages over its rivals.

The first is that VXA-CoV2-1 comes in the form of pills, making it a more convenient and generally preferable option for a lot of patients.

The second is that VXA-CoV2-1 can be stored at room temperature, which eliminates any type of special handling unlike the vaccines of Pfizer-BioNTech, Moderna, and even AstraZeneca (AZN).

The third is that you can take VXA-CoV2-1 on your own. Since these are pills, there is no need for a healthcare worker to administer the COVID-19 vaccine.

This means that VXA-CoV2-1 can be delivered for at-home use.

These advantages effectively eliminate barriers in the healthcare systems, making it easier and more convenient to purchase and deploy VXA-CoV2-1.

Looking at all potential markets, Vaxart could find a niche in underdeveloped regions.

On top of all these conveniences, the technology used to develop VXA-CoV2-1 can also be utilized in creating an oral vaccine against other diseases.

So far, VXA-CoV2-1 is only in Phase 1 of its clinical trials, with new data expected to be released this February.

Prior to this, results showed that VXA-CoV2-1 eased lung viral load and alleviated lung inflammation in hamsters that were infected with COVID-19.

While all these definitely sound amazing, everything is still in very early stages. Plus, results from hamster studies are a far cry from showing efficacy in human beings.

This makes the Phase 1 data release a sort of make-or-break event for Vaxart.

Other than its COVID-19 vaccine candidate, Vaxart has been working on an oral vaccine for influenza as well.

This product is currently undergoing Phase 2 clinical trials and has so far surpassed the efficacy of Sanofi’s (SNY) Fluzone by 8%. 

In terms of pipeline growth, Vaxart is still no match to Moderna, which has developed technology that could cure cancer and other rare diseases. It’s probably closer to Novavax (NVAX), which is also working on an influenza vaccine.

So, is Vaxart the new darling of the biotech world?

It definitely has the potential.

However, its success hinges on everything aligning perfectly. But as a certain guy named Murphy has pointed out, that oftentimes does not happen.

Vaxart is subject to forces beyond its control.

There’s no absolute guarantee that its COVID-19 vaccine candidate will fare well in all the clinical trials.

Vaxart has a viable path of delivering humongous gains this year. However, this path is also riddled with lots of risks.

It is a highly risky stock and is best left to aggressive investors.

Moreover, Vaxart is in a precarious position right now, wherein a failed clinical result in human studies would be devastating for the shares.

On the other side, a positive human data readout would send the shares soaring in the next months.

Truth be told, sky would be the limit for Vaxart’s stock price if FDA actually approves its oral vaccine candidate.

Undoubtedly, Vaxart will be at the center of debates between short-sellers and passionate bulls throughout 2021. The bottom line is that will always be a trade-off of risk and reward in any type of investing.

If you have faith in Vaxart’s science and are confident that you have the stomach for a crazy roller-coaster ride, then you can give this biotech stock a chance.

Otherwise, play it safe and invest in less volatile biotechnology stocks instead.