There’s a lot to be excited about for investors in Novavax (NASDAQ:NVAX) stock. That’s because it looks like the tentative bullish case surrounding the vaccine stock is improving.
Well, it’s difficult to tell actually because Novavax has disappointed investors before. The firm pushed back regulatory filings earlier this year. It had surprised with strong data from Phase 3 trials early in the year.
Sometime following that news the company stated that it planned to submit documentation for vaccine authorization with both U.K. and U.S. regulators in the second quarter.
Those submissions were delayed and share prices have been choppy throughout the year as a result.
The good news is that there has been definitive movement from the company.
U.K. Submission
On Oct. 27, Novavax announced that it has submitted its application for authorization of its Covid-19 vaccine to U.K. regulators.
The news is undoubtedly positive for the company judging by the market reaction. Indeed, NVAX share prices jumped from the mid-$130s to near $150 on the news.
But investors have to also be cognizant of what the news really means. Again, this is only a submission for authorization, rather than authorization itself. It brings Novavax a step closer toward revenues from its vaccine. Further, it is only closer to receiving those revenues in the U.K.
The company has yet to make any announcement regarding the U.S. market and Food and Drug Administration approval. The company noted that it plans to submit its application for emergency use approval to the FDA by the end of the year.
Expect stock prices to move when then happens, but also remain cognizant of the fact that Novavax has delayed that FDA submission in the past. That fact likely will hold NVAX stock a bit lower as investors continue to guess when FDA submission will occur.
Ultimately though, it seems that there’s good reason to consider investing in NVAX stock at present.
Other Market Potential
Lost in the news was the fact that Novavax also noted its intention to “also complete regulatory filings in other markets, including Europe and Canada, shortly following the U.K. submission.”
All of the news amounts to NVAX finally moving forward towards revenue generation. Even a week earlier there was a lot of speculation around further delays.
Rumblings Amount to Nothing
Back on Oct. 20, share prices dropped following a report by Politico that Novavax had encountered difficulties in meeting manufacturing quality standards.
Novavax quickly countered the media reports by issuing its own statement:
In response to a recent news article citing anonymous sources, Novavax confirms our confidence in our ability to deliver our high-quality vaccine. … Throughout, we have maintained active conversations with various regulatory agencies in key markets and have incorporated their feedback into the submissions for authorization that we are in the process of completing.
Novavax did complete one of those submissions so that does indicate that the company was truly confident in its ability to produce a vaccine up to standards.
What to Do With NVAX Stock
It’s clear that investors will have to continue to play the waiting game with NVAX stock. That said, the company has taken a monumental step forward in its evolution. One that makes revenues distinctly more tangible than they were even a week ago.
Given the fact that share prices are still low, now looks like the best time to establish a position. Novavax is certainly more compelling now than it was at any time prior.
On the date of publication, Alex Sirois 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.
