Until 2020, Novavax (NASDAQ:NVAX) was just another pharmaceutical company involved in research and development. But the pandemic made it one of the top pharmaceutical companies in the world. The Covid-19 vaccine manufacturer hasn’t had a smooth ride for the past year but there are several breakthroughs that can take NVAX stock higher.
The company has faced consistent FDA approval delays which have led to a dip in NVAX stock. But one thing is certain. Novavax is a vaccine manufacturer which an efficient product against the virus. This will help gain a strong position in the industry.
NVAX stock was valued at $119 in August 2020 and started 2021 at $113. It has gone significantly higher since then and hit an all-time high of $331 at a point. It is currently exchanging hands at $231 and I strongly believe that the stock will soar higher due to the high vaccine demand across countries.
Let’s dig deeper into the factors driving growth for Novavax.
The FDA Approval Cannot Stop Its Growth
Novavax has been making a lot of news about the delays in FDA approval. The company was supposed to submit for the U.S authorization in the third quarter but it has pushed it to the fourth quarter. However, the FDA approval is not all for the company. Besides the U.S., there are several countries across the globe looking for vaccines and Novavax is making the right moves there.
The company has filed for regulatory authorization in India, Indonesia and the Philippines. It will submit a regulatory filing in the U.K. next month and will then submit in Canada and Australia after a few weeks.
Most importantly, Novavax has filed an emergency use listing application with the World Health Organization, which will permit the company to sell the vaccine to several nations and will open new doors of revenue. The pandemic isn’t over and several countries are struggling due to the spread of the Delta variant. Novavax will be able to supply vaccines to lower and middle-income countries after the approval by WHO.
Further, the company remained on track to manufacture 100 million doses a month this quarter and will produce 150 million doses by the next quarter which says a lot about its production capacity.
Novavax is constantly putting money into research and it has led to impressive results. The Booster Development Program is going well and the company should be able to ship the vaccines this month. The company is also planning to file an application for the booster shots with the FDA. Nobody knows how many and for how long we will require booster shots and if Novavax can get it right, there is no stopping the growth of the company.
The growing threat of the Delta variant has led to a rise in the demand for vaccines and Novavax has a strong inventory as well as production capacity. The EU has a supply contract with Novavax to purchase up to 200 million doses while Denmark will buy 280,000 doses.
The Bottom Line On NVAX Stock
Despite the delay in FDA approval, countries are impressed with the results of the vaccine and it shows in their willingness to buy the vaccine. There are not many vaccine players in the industry and it does not look like the demand will decline, until then Novavax has a lot to gain.
Novavax’s outlook might not look rosy right now but there is a long way to go. It will not take too long for the company to get FDA approval. Until then, this dip in NVAX stock is a great buying opportunity.
It is not easy to get FDA approval, but Novavax is close. With an approval, the stock will soar higher than $250 and the fundamentals will improve significantly.
One thing is certain. The covid vaccine manufacturer has strong growth potential as the world tries to stop the spread of the virus.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
