VIR Biotechnology (NASDAQ:VIR)

Underpriced stock with a strong pipeline and an effective COVID-19 therapy that is selling well overseas.

In the short term I like Vir because the market is seriously undervaluing its COVID treatment.

https://www.fool.com/investing/2022/02/10/3-biotech-stocks-that-are-too-cheap-to-ignore/

It's possible that we'll develop "herd immunity" to COVID, and when we catch mutating strains in the future, we'll be asymptomatic. If so the future COVID revenues will probably dry up. But another possible future is that COVID continues to mutate, and continues to be a threat, for a long time. If that's the case, Vir is going to be a spectacular investment.

Regardless, the massive revenues for 2022 are a certainty. The drug has an EUA, and it's already been sold. And the FDA has withdrawn the EUA for its competitors, because they don't work on the Omicron mutation.

Glaxo is selling and manufacturing the drug, and Vir is taking almost 75% of the revenues from the sales. Vir will make billions this year, and at a $4 billion market cap, it's dramatically underpriced on that basis alone.

Vir is also the opposite of a one-hit wonder. It's got a whole platform full of interesting molecules, including one that might be an effective cure for hepatitis B. The risk/reward ratio for Vir is amazing right now. Bought shares this week.