Although coronavirus vaccines from Pfizer and Moderna are in the process of being distributed, the race for vaccines is far from over. One of the company’s leading the second wave of vaccines is Heat Biologics, a small US biotech firm that typically focuses on cancer therapies.
Heat Biologics is developing an alternative COVID-19 vaccine that it expects to work better in immunosuppressed individuals and the elderly. While it may not find the same broad market as the Pfizer and Moderna vaccines, we think there is plenty of reason to be excited about Heat Biologics shares.
Want to start trading shares of this coronavirus vaccine developer? We’ll show you how to buy Heat Biologics shares in the UK and take a closer look at why we think this company is a buy right now.
Heat Biologics trades on the NASDAQ stock exchange in the US. However, it’s a relatively small company with a market cap of just $131 million, so not all UK stock brokers offer trading on this company’s shares.
Among those that do, it’s important to look at key factors like how much you’ll pay for trading and what trading tools are available. You want to make sure that you’re paying as little in commissions and fees as possible and that your broker’s trading platform offers the information you need to make informed trading decisions.
With that in mind, let’s take a closer look at two top brokers you can use to buy Heat Biologics shares in the UK:
eToro is one of our most highly recommended brokers for UK traders. This platform offers trading on more than 800 shares from around the world, including hundreds of US stocks that competitors don’t carry. In addition, eToro has a selection of more than 450 ETFs along with over 40 forex pairs and dozens of commodities.
Trading share CFDs at eToro is 100% commission-free. In addition, this trading platform has some of the lowest spreads in the industry, so you pay the minimum amount possible when you buy shares of US companies like Heat Biologics. There are some account fees, including a £4 withdrawal fee and a £15 inactivity fee after one year, but these are relatively easy to avoid.
One of the best things about eToro is its social trading platform, which allows you to interact with millions of other traders from around the globe. You can follow traders with a similar style to your own or swap trading strategies with someone who sees the market differently. eToro also supports copy portfolios, which enable you to quickly build a diversified portfolio or put your account on auto-pilot.
We also like eToro’s charting and research tools. The platform’s charting software for web and mobile comes with over 100 built-in technical studies and drawing tools. Plus, you get access to analyst price targets for most major companies so you can see what experts think about a stock. eToro also includes a free market news feed and economic calendar.
eToro is regulated by the UK’s Financial Conduct Authority and is widely trusted. All UK accounts are backed by the Financial Services Compensation Scheme for up to £85,000. Plus, eToro offers 24/5 customer support.
75% of retail investor accounts lose money when trading CFDs with this provider.
Fineco Bank is another highly rated 0% commission UK CFD broker. This platform offers trading on thousands of shares from the US, UK, and Europe. What’s especially great about Fineco Bank is that the broker not only leaves our commissions, but also adds no additional spreads. As a result, you pay the absolute minimum amount for every trade.
Notably, Fineco Bank also offers share dealing accounts. Share dealing is relatively inexpensive, at £2.95 per UK share deal and $3.95 per US share deal. The broker also offers CFDs for forex trading, commodity trading, and options trading.
Fineco’s trading platform doesn’t have quite as many features as eToro’s, but there’s still a lot to like. To start, the PowerDesk charting software is an extremely powerful interface for trading from your desktop. It comes with dozens of indicators and analysis tools, plus a built-in news feed. Fineco also offers a mobile stock trading app for iOS and Android, but the charting isn’t quite as in-depth.
We also like Fineco Bank’s tools to help you find new stocks to trade. There’s a global stock screener, which you can filter by country, sector, performance, or technical indicators. The broker also provides an economic calendar and webinars where you can learn more about top stocks from the broker’s analysts.
Fineco Bank is based in Italy and is regulated by the Bank of Italy. UK traders are protected by the Financial Services Compensation Scheme in the unlikely event that anything happens to Fineco. The bank has been around for over 20 years, so it’s considered highly trustworthy.
Your money is at risk.
Before you buy Heat Biologics shares, it’s important to know what you’re getting into. This small biotech firm is off many investors’ radars, especially when it comes to coronavirus vaccines. So, let’s take a deep dive into this company’s financial history and outlook.
Heat Biologics was founded in Morristown, North Carolina, in an area known as the Research Triangle. The company traditionally focused on cancer treatments that target the immune system, a specialty known as immuno-oncology.
The company listed on the NASDAQ stock exchange in 2013 with shares trading at $10 apiece. The IPO raised a total of $25 million.
However, Heat Biologics shares have steadily dropped in value since 2013. Before the market crash in March, which lifted many pharmaceutical companies, Heat Biologics shares were trading at just $1.52 each.
The company’s shares rose to over $4 on news that the company was working on a COVID-19 vaccine, and rocketed to over $28 per share after announcing positive results from a Stage 2 (pre-clinical) vaccine trial. The effect of the news quickly wore off, though, and Heat Biologics shares fell back down to $8.60 within two months.
Shares reacted even more abruptly to news from Pfizer and Moderna that their vaccines were each around 95% effective. The stock dropped to $0.95, below the NASDAQ’s $1 share price minimum for listing. As a result, Heat Biologics undertook a 1-to-7 reverse stock split in early December to avoid being delisted from the stock exchange.
Since the reverse stock split, Heat Biologics shares are trading around $6 each. The company currently has a market cap of just over $131 million. Heat Biologics is not profitable, reporting an earnings per share (EPS) of -$1.54 last year and losing just over $20 million.
Heat Biologics is not profitable and does not pay a dividend. Investors should not expect a dividend from this company anytime in the near future.
Should I Buy Heat Biologics?
Heat Biologics is a promising biotech company that’s trading at a bargain price. The company’s shares were hit extremely hard by the news of successful coronavirus vaccines from Pfizer and Moderna. Yet this ignores some key facts about Heat Biologics’ vaccine candidate and the importance of having multiple vaccines available.
First, there is room for more than just two vaccines. The demand for vaccines is global and it’s clear that Pfizer and Moderna cannot produce billions of doses within the next year. Heat Biologics is planning to start Phase 3 clinical trials early next year, so the company could have an approved vaccine ready by the end of 2021. At that point, there will still be billions of people that need to be vaccinated around the world.
In addition, the Heat Biologics vaccine works differently from the Pfizer and Moderna vaccines. Both the Pfizer and Moderna vaccines aim to elicit an antibody response. This works well in the majority of healthy individuals, but it may not be enough to confer immunity in elderly or immunosuppressed individuals. To date, the vaccines have not been rigorously tested in these populations.
Heat Biologics’ vaccine candidate, on the other hand, draws on the company’s experience with immuno-oncology to target T cells. This is a different and more robust part of the immune system that is active even in many elderly and immunocompromised individuals. The company plans to test its vaccine among the elderly next year and believes that its vaccine may ultimately prove more effective in this population. In fact, Heat Biologics’ founder has suggested that its vaccine may ultimately boost immunity in elderly individuals who have already received the Pfizer or Moderna vaccines.
If that’s the case, the potential market for Heat Biologics’ vaccine remains enormous. If it’s not the case, but the company’s vaccine is competitive in efficacy with the Pfizer and Moderna vaccines, Heat Biologics still has an opportunity to contribute billions of doses to the global supply.
Either way, the drop in Heat Biologics shares in response to the Pfizer and Moderna vaccines looks like an overreaction. To be sure, Heat Biologics is a high risk investment – there’s still a chance that it’s vaccine doesn’t work, or doesn’t work well. But for traders and investors willing to take a gamble, the upside potential for buying biotech stocks in this firm is tremendous.
Step 3: Open an Account and Deposit Funds
Ready to buy Heat Biologics shares? We’ll show you how to get started using eToro, which offers 0% commission trading and an advanced trading platform.
To begin, head to eToro’s website and click ‘Join Now.’ You can either create a new account by entering a username, password, and your email, or create an account using your Google or Facebook login details.
In order to comply with UK anti-money laundering regulations, eToro requires that you verify your identity. You can complete this step online in just a few minutes by uploading a copy of your driver’s license or the picture page of your passport. You’ll also need to upload proof of address, which can be a utility bill or bank statement.
Next, you can fund your new account. eToro requires a minimum deposit of £140 and offers several ways to pay, including:
- Bank transfer
- Credit/debit card
All funds deposited by credit or debit card or using an e-wallet are available for trading instantly.
Now you’re ready to buy Heat Biologics shares with eToro. From your account dashboard, search ‘Heat Biologics.’ When the company appears in the drop-down menu, click ‘Trade’ to open a new order form.
In the order form, enter how much money in US dollars you want to invest in Heat Biologics. You can trade any amount over $50 since eToro enables you to buy fractional shares.
Next, choose a stop loss or take profit level if desired and select whether to apply leverage to your trade (eToro offers leverage up to 5:1). Keep in mind that leverage increases your risk and carries additional trading fees.
When you’re ready, click ‘Open Trade’ to buy Heat Biologics shares.
Heat Biologics is a risky investment, but we think it’s a risk worth taking. The company is developing a COVID-19 vaccine that is fundamentally different from the ones created by Pfizer and Moderna. Although the market reacted as if Heat Biologics is directly competing with these companies, it’s important to remember that the addressable market is every person on the planet and that Heat Biologics’ vaccine is expected to work better for some at-risk populations.
On top of that, Heat Biologics is extremely inexpensive in the way of the vaccine news. For risk-tolerant traders, there is very little downside risk to this company and extremely high upside potential. Even a small investment could have a big payoff if Heat Biologics’ vaccine candidate is successful.
Interested in investing in other pharmaceutical companies that are involved in developing a coronavirus vaccine? Check out the list below.
Heat Biologics is one of many small biotech firms leveraging its existing expertise to develop a new COVID-19 vaccine. Although the company’s shares took a significant hit on news of the Pfizer and Moderna vaccines’ success, we think that there’s still an enormous addressable market for an effective vaccine from Heat Biologics. To that end, we think Heat Biologics is a strong buy right now.
Ready to buy Heat Biologics shares in the UK? Click the link below to get started with eToro today!
75% of retail investor accounts lose money when trading CFDs with this provider.