Novavax (NASDAQ:NVAX) stock is up 8% in pre-market trading after announcing that it expects to begin deliveries of its Covid-19 vaccine to the European Union in the first quarter of 2022. Along with this, the European Medicines Agency just recommended its vaccine for a conditional marketing authorization.
The news is a welcome change for Novavax, which has faced chronic delivery delays. In fact, challenges to deliver its Covid-19 vaccine have weighed on NVAX stock. One big hurdle that remains for Novavax is regulatory approval in the U.S. To date, its vaccine has not received authorization from the U.S. Food and Drug Administration.
What Happened With NVAX Stock
The prospect of distributing its Covid-19 vaccine throughout the EU is exciting for Novavax, which has also recently gained approval for its drug in Indonesia, and expects further approvals in India and the Philippines. Additionally, Novavax just received emergency-use listing from the World Health Organization (WHO) for its vaccine. This could lead to more countries using its vaccine, including those throughout Africa.
More broadly, stocks of vaccine manufacturers are climbing higher today amid heightened fears of the omicron variant. Shares of other Covid-19 vaccine makers such as Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE) are gaining ground this morning as several European countries institute new lockdown measures, and after Moderna announced that its booster shot appears to be effective against the newest variant.
Why It Matters
Novavax has worked to stand out in the vaccine race, focusing primarily on an international commercialization strategy. The company does still anticipate applying for FDA approval in the near future, but its success so far has come globally. As I wrote previously for InvestorPlace, this could result in sales of $30 billion in 2022.
This international approach may therefore be the right one. Novavax has previously said that it is looking for additional grants and contracts, and revenue from other countries could support it in 2022 and beyond. This comes after it reported a net loss of $322.4 million in the third quarter.
What’s Next for Novavax
NVAX stock is getting a much-needed boost today on positive news regarding the approval and sale of its vaccine in foreign markets. Gaining FDA approval would still be beneficial for the company and its share price, but in the meantime, the company can at least begin to generate some much-needed revenue from overseas sales of its Covid-19 vaccine and use the money to grow and scale its business.
On the date of publication, Joel Baglole held a long position in MRNA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.