Novavax Stock Has at Least Two Important Things Going for It

With the ever-changing approach to solving the pandemic, this recent bump in Novavax (NASDAQ:NVAX) stock is driven by the strong potential of the company. 

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

The pandemic has changed the growth story of pharmaceutical companies. While we hope to return to our normal lives at the earliest, the majority of the world’s population has not been vaccinated.

Vaccine manufacturers are trying to make the most of the situation by increasing production and sales. 

NVAX stock was as high as $330 in Feb 2021 but is trading much lower, at $223 today. I believe this decline is only due to the delay in filing for authorization and the stock is ready for a rebound.

Despite having a volatile year, NVAX stock looks promising to me.

The Novavax vaccine was found to be highly effective against the new strains of coronavirus that were found in India, the United Kingdom, Brazil, the United States and South Africa.

The company has signed agreements with Europe, Japan, India, and the U.S. for vaccine doses. It has also partnered with the Serum Institute of India for 1.1. billion doses of the vaccine.

NVX-CoV2373 is also being evaluated in children aged 12 years to 17 years. Further, the company is working on its boosters and it is in the phase II study.

The company plans to file regulatory applications for the emergency use of the vaccine in the USA by the next month. But even without the approval, the company has enough contracts from across the globe which will continue growing the revenue.

It is important to remember that several countries across the world have very low vaccination rates and the demand for vaccines is going to continue for the next two years. 

Approval and Potential for NVAX Stock

If Novavax gets the approval, there is no stopping its growth. The company is going to fire on all cylinders and report outstanding revenue numbers.

If there is any delay in the approval, it will have to continue working on the regulatory requirements while hoping for positive results for the booster shots and vaccine for adolescents. All in all, the future of Novavax looks bright and it is driven by the Covid vaccine. NVAX stock has a long way to go.

Novavax recently stated that it has started an early-stage study for a combined flu and Covid-19 vaccine.

The trial will be conducted on adults who have either been infected with the coronavirus or have taken an authorized vaccine at least eight weeks before the start of the study.  

A combination of these two vaccines can be huge for the company. It could lead to higher efficiency in the healthcare system and could solve two problems with a single vaccine.

Novavax’s NanoFlu/NVX-CoV2373 showed a strong response to influenza A and B. It also protected from the coronavirus in pre-clinical studies. The company expects the results of this trial in the first half of 2022.

The Bottom Line 

If all goes well and the company reports strong vaccine results, the combined vaccine could be in high demand and could generate massive revenue for Novavax. It could take NVAX stock to strong highs next year. 

Novavax’s portfolio at the current stage is focused on the Covid vaccine and the trials which could test your patience but the pipeline progress will keep NVAX stock afloat. The possibility of the approval of the pipeline candidates will take the stock to a high and increase the revenue prospects of the company. 

Even if the company is not the frontrunner, it is still a part of the race.

Novavax may have to face stiff competition even if the vaccine is approved but the demand is constantly rising and there is enough space for growth. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analyses.


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