Vaccine manufacturer Novavax (NASDAQ:NVAX) is making a couple exciting announcements today. However, the price of NVAX stock is dropping. What is causing the losses for NVAX even after its big Covid-19 vaccine news?
Novavax, a Reddit-favored vaccine play, is making moves today both overseas and in the realm of pediatric health.
First, the company announced its expansion into clinical trials testing its Covid-19 vaccine in adolescents. The biotech company is initiating its Phase 3 clinical study of its vaccine, testing 3,000 adolescents between the ages of 12 and 17. The test is a huge deal; without much in the way of testing teenagers and children for coronavirus vaccine efficacy, Novavax is a trailblazer into this much-needed sector of study.
Joining this announcement was news of a second unveiling: Novavax is planning to ship vaccines to the European Union in late 2021. Reported by Reuters, the deal will see 200 million doses of Novavax’s Covid-19 shot making their way to Europe. The doses reportedly were meant to make their way over earlier, but a supply chain issue prevented this. Now, the shipment has seen approval, and will be making its way overseas alongside shipments of Pfizer (NYSE:PFE) and BioNTech (NASDAQ:BNTX) doses.
This shipment is in the works, but it is still contingent on Novavax receiving approval from the European Medicines Agency. The vaccine is one of many in development in the U.S. that has also not yet received U.S. Food and Drug Administration approval.
The Bottom Line on NVAX Stock
Why is all this good news driving down NVAX prices today? Investors are speculating that the losses are due to the announcements disrupting the vaccine’s delivery timeline. The announcement of the adolescent vaccine tests means approval for the vaccine will likely be delayed for months, according to one user. Others agree, citing the pair of announcements as evidence the vaccine will not see U.S. implementation for a long time.
However, it is important to remember that much of the negativity today is coming from social media speculation. Keep that in mind as you are evaluating the drop in NVAX stock.
NVAX stock has lost nearly 17% so far today, even with the good news. Shares are trading at $196.01.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.