As Covid-19 cases continue to decline across many nations, vaccine access continues to expand. One company which has been mostly enjoying the ride so far is biotech innovator Novavax (NASDAQ:NVAX), which just reached an important milestone. This morning began with news that the company’s vaccine had received emergency-use authorization from Indonesia’s government. For a vaccine producer that has yet to receive this type of approval, this is a significant step forward. It comes while the company has been awaiting authorization from the United Kingdom. NVAX stock has reacted well to the news from across the globe.
NVAX Stock: What’s Happening
Shares of NVAX stock are up by 15% today. Last week saw similar patterns from the stock, which rose more than 19% over the past five days.
October was a somewhat rocky month for NVAX stock. While it began with shares trading well, some unsettling news regarding the company’s manufacturing facility sent the stock plunging. If these recent growth trends continue, though, NVAX will be well on track to make up the ground it lost.
What It Means
When it comes to gaining market share in the vaccine race, much depends on speed. The largest markets are closing as vaccination rates rise throughout the U.S. and Canada. Novavax can take some comfort in the fact that its protein-based vaccine is unique in its ability to combat Covid-19 variants. As InvestorPlace contributor Joseph Nograles noted, this attribute could lead to Novavax providing the “booster of choice,” as the need for third shots increases.
Novavax still has plenty of ground to cover before it can celebrate too much. That said, it’s taking significant steps to get there. It’s uncertain where things will fall regarding U.K. authorization, but the company has already filed for vaccine approval in Canada. As talk turns to the possible end of the pandemic, public health authorities are more eager than ever to help new vaccines get to market, particularly if they can help prevent the spread of new variants. In that aspect, Novavax has a competitive edge.
Why It Matters
This type of speculation will certainly help keep NVAX stock in the green in the short term. As InvestorPlace contributor Faizan Farooque recently stated, “The world is waiting for an alternative to the mRNA vaccines to be approved and Novavax has the most likely candidate. With filings submitted to multiple regulators, NVAX stock has a number of potential positive catalysts.”
That assessment was made before Novavax had received its authorization from Indonesia or filed for approval in Canada. NVAX stock has reacted well to speculation, and once it actually receives the good news from regulators, the growth can continue into the long run.
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.
