Novavax (NASDAQ:NVAX) news for Tuesday concerning funding for a vaccine to stop the novel coronavirus has NVAX stock rocketing higher.
A press release from the company reveals that the Coalition for Epidemic Preparedness Innovations (CEPI) will be investing $384 million to push forward the development of the vaccine. That’s in addition to the $4 million it already invested in it.
According to the Novavax news release, the company will be using the funding in a few different ways. First off, it will set up a Phase 1/2 clinical trial of its coronavirus vaccine. It will also use the money to increase production so that it can create more of the vaccine sooner.
Novavax notes that its Phase 1 trial for the coronavirus vaccine starts in Australia this month. It plans to move forward with Phase 2 trials in other countries if the Phase 1 trial produces significant results.
Novavax estimates that it can produce 100 million doses of its coronavirus vaccine by the end of 2020. If the positive momentum continues, it may be able to make as many as 1 billion doses during the following year.
Richard Hatchett, CEO of CEPI, said this in a statement.
“Our vaccine R&D programmes are starting to show progress, so it is vital that we invest now to boost manufacturing capacity, so that our partners have the ability to produce vaccines at a global scale. We still have a long way to go, but we’re making important steps forward to deliver a safe, effective, and globally accessible vaccine as quickly as possible.”
NVAX stock was up 79.4% as of Tuesday afternoon.