Stick with Novavax as the Vaccine Competition Goes Global

While Novavax (NASDAQ:NVAX) certainly isn’t the only company in the race to develop an effective Covid-19 vaccine, it’s one of the most promising contenders. For many investors, NVAX stock represents a stake in the success of NVX-CoV2373, the company’s noteworthy vaccine candidate.

Novavax (NVAX) logo surrounded by medical supplies
Source: Ascannio/

Now, some might claim that the vaccine race is reaching its final stages. But there are markets around the world that remain untapped. Biotechs must be aggressive if they’re going to capture market share in these regions.

Given that, investors in NVAX stock will be glad to know that the company is among the most aggressive biotechs. Novavax has already established varying levels of supply agreements for NVX-CoV2373 with the United States, the United Kingdom and Canada.

Plus, through partnerships, Novavax has made arrangements to supply its vaccine to Japan, South Korea and India. But the company isn’t stopping there. As you’ll soon read, there are more new frontiers that are ripe for the company’s picking.

NVAX Stock at a Glance

Before we going any further, however, it’s important that we discuss NVAX stock itself. Right now, shares are currently trading at a reduced price, making the stock a steal. The price per share is nowhere near its 52-week high of a little over $189. At the time of this writing, it can be bought for less than half of that, at around $90.

Unfortunately, some investors got caught up in the stock’s manic phase in August. That’s when NVAX topped out after a swift run-up in the share price.

If you bought the stock during that time, hopefully it’s a lesson learned. But there’s still hope on the horizon. Currently, there seems to be support at the $80 level and the selling spree appears to be over.

So, now you have an opportunity to trade like a real institutional investor instead of an amateur — this is a chance to buy NVAX on the dip instead of frantically grabbing shares during the hype.

Far Away, Yet Much Closer

As companies like Novavax work to get closer to a successful novel coronavirus vaccine, it’s imperative for these biotechs to reach out to governments and strike deals now.

That’s precisely what Novavax is doing. In a real headline grabber, the company announced an agreement in principle for a massive supply deal with Australia.

More specifically, it signed a non-binding Heads of Terms document with the Australian government. Reportedly, the agreement will enable Novavax to supply 40 million doses of NVX-CoV2373 to the Australian community.

Now, NVAX stock bulls might not like the fact that the deal is currently a non-binding agreement. Nevertheless, it’s a big step closer to securing an arrangement with a huge potential market for the vaccine candidate.

Australia’s Importance

It’s likely that not every NVAX stock holder appreciates the importance of Australia in NVX-CoV2373’s development. Back in August, Australian clinical researchers led the global Phase 1 clinical trial for the candidate.

In addition to that, around “690 Australians have participated in the Phase 2 arm of the clinical trial” for the vaccine. It shouldn’t be surprising, then, if Australia plays a major role in the planned global Phase 3 clinical programs for this drug.

What’s more Novavax President and CEO Stanley C. Erck has clearly appreciated the country’s contributions to this endeavor. In the announcement of the agreement, Erck said:

“This arrangement with the Australian Government reflects the importance of the ongoing clinical development of NVX-CoV2373, and will ensure that the citizens of Australia will have access to its supply.”

Furthermore, Erck gave NVAX investors another possible milestone to look forward to in the announcement. He clarified, “We are pleased with the progress of our ongoing Phase 3 clinical trial in the UK, and are pressing forward to deliver efficacy data for NVX-CoV2373, with interim data in this event-driven trial expected as soon as early first quarter 2021.”

Clearly, then, multiple countries — especially Australia — have some degree of faith in Novavax’s product. Needless to say, that’s a promising sign for investors.

Bottom Line

Of course, it’s perfectly fine to invest in more than one biotech stock as the Covid-19 vaccine race gets closer to the finish line. In fact, it’s smart not to have all of your eggs in one basket.

But that being said, you might want to consider adding NVAX stock to your watch list. This company is taking a global approach to its Covid-19 vaccine development strategy, and that only bolsters the case for its success.

On the date of publication, Louis Navellier had a long position in NVAX.  Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system —with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.

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