Novavax (NASDAQ:NVAX) news for Thursday concerning includes the company’s stock falling hard on talk of a vaccine for the novel coronavirus.
Unfortunately for Novavax, this news isn’t about its coronavirus vaccine. Instead, it has to do with Russia approving a vaccine for the virus. Novavax is among the companies rushing to get a coronavirus vaccine out first and this news spooked investors of NVAX stock.
While NVAX stock is retreating today, investors might have suffered a knee-jerk reaction to the vaccine news. While Russia did approve a vaccine, it’s only allowed for use in vulnerable people, such as the elderly and healthcare workers.
Adding to the confusing news from Russia hitting Novavax stock today is the lack of widespread testing. The vaccine has only seen testing in 76 individuals and isn’t being rolled out for wide-scale use until the start of 2021. Keeping that in mind, it looks like Russia gave the approval early for status more than anything.
Svetlana Zavidova, the leader of the Association of Clinical Research Organizations in Russia, said the following to ScienceMag.
“I feel only shame for our country. Accelerated registration will no longer make Russia a leader in this race, it will only expose end users of the vaccine, citizens of the country of the Russian Federation, to unnecessary danger.”
While investors may be damaging NVAX stock after the vaccine news, analysts are still excited about Novavax potential. Several analysts are expecting the stock to climb higher as progress reports for the coronavirus vaccine prove promising.
NVAX stock was down 15.9% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.