In its race to supply Covid-19 vaccines for more citizens, Japan’s government is turning to a new partner following the alleged contaminations found in the vaccines provided to them by Moderna (NASDAQ:MRNA). Takeda Pharmaceutical (NYSE:TAK) will now be supplying millions of vaccine doses produced with the formula of Novavax (NASDAQ:NVAX). As a result, NVAX stock has already risen by almost 7% as of this writing.
What Happened With NVAX Stock
According to a statement released by Takeda, Japan’s largest pharmaceutical manufacturer, the U.S.-based Novavax will be licensing and transferring manufacturing technologies to allow it to domestically produce the vaccine at a faster rate. According to Fierce Pharma, “The partners will combine the antigen with an adjuvant, Matrix-M, provided by Novavax, in the fill/finish stage of production.”
The agreement with the Japanese government is for 150 million doses to start. An earlier agreement between the two dictated terms for the company to produce 250 million vaccine doses that would be sent to other countries if necessary, also using the Novavax formula.
As the Novavax vaccine is still being developed, Japan’s government hopes to start the rollout in early 2022, pending necessary regulatory approvals.
Why It Matters
Japan’s attempted vaccine rollouts have met with complications, particularly their recent distribution of Moderna-produced vaccines which contained contaminated materials. Takeda has worked closely with the government throughout the entire process. For it to choose to partner with Novavax indicates a strong level of trust both in the company and in it formula.
An effective vaccine also can’t come soon enough for Japan following the Covid-19 outbreaks that resulted from the highly contested 2021 Summer Olympics. The country’s leadership has received considerable criticism following the decision to host the events. Increasing vaccine availability would do much to help both the country and its leaders, move forward.
What’s Next for Novavax?
If Japan’s government trusts Novavax enough to order 150 million vaccines made with its formula and technologies, it is likely that other countries will as well. The support of multiple governments can do much to help a stock succeed and it seems as though NVAX stock is heading in exactly that direction.
InvestorPlace’s David Moadel recently touted the path for growth he sees for NVAX stock. As he states:
“Apparently, the good news is pouring in for Novavax and the company’s stakeholders lately.
To be more precise, these constructs will use the Matrix-M1 adjuvant to target the Covid-19 Beta and Delta variants.”
Moadel sees reason to believe that NVAX stock will move beyond the peak it enjoyed in February of this year. As of now, that certainly seems to be true. Covid-19 variants worrying individuals around the globe, but this company is working to address them and governments are starting to take note. Investors should as well.
On the date of publication, Samuel O’Brient 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.