Novavax (NASDAQ:NVAX) stock has been on a wild ride this year, but the future looks bright as the company is positioned for sustainable growth.
The COVID-19 pandemic has not left us yet and nor has the need for vaccines. With COVID cases again rising across countries, there is a need for vaccines and booster shots.
It was just another pharma company until 2020, but Novavax’s fortune changed as the pandemic hit home.
NVAX stock is up 83% over the last year and 22% in the past six months. It is a vaccine stock you should watch out for. The success story of Novavax has only begun and there is a long way to go. Let us dig deeper into the investment case of NVAX stock.
Strong Third-Quarter Results
Novavax reported revenue of $179 million in the quarter as compared to $157 million in the same quarter the previous year. The rise is the result of developments related to the Cold vaccine.
Further, the company reported a higher loss of $4.31 per share as compared to the loss of $3.21 in Q3 2020. This could be due to the significant rise in research and development expenses the company incurred this year.
It reported the R&D expenses at $408 million in the quarter as compared to $294 million in the same period the previous year.
Novavax is losing money, but that’s natural for a company at this stage. It has spent a lot of money on the research and development of the vaccine, plus, it is spending money for the approvals. These expenses are transitory and will come down as the approval processes come to an end.
Interestingly, the company achieved the goal of 100 million doses a month in this quarter and is on track to the next goal of 150 million by December.
This means 600 million doses in the year. It has already signed supply deals with several countries for the next year and has a solid production schedule.
The Future Looks Bright
Novavax has already received the Emergency Use Approval from Indonesia in collaboration with the Serum Institute of India. This means the company can start making revenue through vaccine sales.
Once it receives approval from other countries, there is no stopping the growth and revenue of the vaccine maker. It will submit the regulatory package in the U.S. before the end of the year.
It also has submissions in India, New Zealand, the U.K., Canada, and Australia. More regulatory approvals mean higher global vaccine rollout and a huge increase in sales and revenue.
Who knows how the pandemic will end? Or whether it will ever end. A lot of studies say that coronavirus will become endemic and all of us will need a vaccine regularly.
This means the demand is not going to end anytime soon. The pandemic could even worsen and countries may order more vaccines. At this stage, nothing can be predicted except for the fact that the pandemic is very much here and the only way to protect yourself is to get vaccinated.
The Bottom Line on NVAX Stock
The success story of Novavax has only begun and the only way to go is up.
NVAX stock will see massive upside in the coming months and 2022 could be the best year for the company. The fundamentals may not be pretty but the future of the company looks bright.
NVAX stock is the one for the long term. As its get approvals and the demand for booster shot rises, the company will report record-high revenue and sales.
Novavax is not just another horse in the race but is making giant strides to the finish line and it is really close. It is a great vaccine stock and has more potential than many of the industry giants today.
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 analysis.