The omicron variant is continuing to spread across the globe, with new cases being detected every day. As medical experts scramble to examine still-emerging data to find the answers everyone is seeking, pharmaceutical producers have been working around the clock to provide both vaccines and treatments to help combat the newest threat. Novavax (NASDAQ:NVAX) hasn’t been trading well lately, but this morning brought an important announcement that might prove to be exactly what NVAX stock needs to turn around and claim its place among the winners of the vaccine race.
What’s Happening With NVAX Stock
This morning, CNBC-TV18 tweeted that the World Health Organization’s (WHO’s) SAGE (Strategic Advisory Group) committee will meet on Dec. 16. This meeting is to discuss granting EUA (Emergency Use Authorization) to Novavax for its recombinant nanoparticle protein-based Covid-19 vaccine Covovax. While it hasn’t done much for NVAX stock so far, this is definitely good news for the biotech company.
'WHO’s SAGE committee to meet on Dec 16 to assess EUA for Serum's Covovax, dossiers being examined,' says WHO Chief Scientist @doctorsoumya. Adds, EMA and MHRA also assessing Novavax’s vaccine this month. @ShereenBhan #Vaccine #COVID19 pic.twitter.com/at62SaHo7J
— CNBC-TV18 (@CNBCTV18News) December 6, 2021
The fact that NVAX stock is in the red today is somewhat surprising, particularly as news broke before market open. As of this writing, it is down by more than 10%, continuing its recent downward trajectory. Despite some bumps in late November, NVAX followed the path of most companies in the wake of the omicron variant breakout, falling by more than 30% since late November.
Why It Matters
This isn’t the first time that Novavax has received good news from abroad. On the contrary, most of its pandemic growth has stemmed from success in international markets. In early November, NVAX stock rose when the company received EUA from Indonesia’s government. Last week, InvestorPlace’s Louis Navellier argued that the pandemic’s new developments were likely to provide international growth opportunities for the stock.
In the early days of the omicron variant, NVAX was identified as a stock to watch as experts hypothesized that the stock was ready to take off due to its early progress in combatting the variant. As variant infection cases have risen, so have reports that NVAX stock will be among the winners of this section of the vaccine race.
Covovax is produced by the Serum Institute of India, the world’s largest vaccine producer as measured by volume. If the necessary authorization is granted, the companies behind it would be well equipped to scale production efforts to meet the growing demand. Countries that have already struggled with vaccination rates are desperate to not fall behind. This is particularly true as a new variant poses a threat both to people and economies. Therefore, it’s likely that if Covovax receives approval, its market will grow significantly.
What It Means for NVAX Stock
All this supports the argument that NVAX is primed to emerge as a breakout vaccine stock as investors contemplate an uncertain market landscape. While we’re currently watching in wait, the next 10 days will be quite telling to see how the stock reacts to mounting anticipation.
Of course, regulatory decisions can go one of two ways. If the WHO decides against granting Novavax the authorization it needs, the stock will likely either fall or remain stagnant. However, this depends on how much growth it sees in the days leading up to this important catalyst. Regardless, for the time being, NVAX is definitely a stock worth watching.
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.