Popular vaccine player Novavax (NASDAQ:NVAX) has certainly been a volatile stock this week. In fact, NVAX stock has been a big mover over the past month, given a series of positive catalysts.
On Dec. 17, Novavax surged to more than $220 per share on news that the World Health Organization granted emergency-use approval for its Covid-19 vaccine. Given the demand for Covid-19 vaccines, particularly in under-vaccinated parts of the world, this news was met with logical optimism.
However, since then, NVAX stock has been on a downward trajectory. This week, the stock did spike following a key announcement that a U.S. Food and Drug Administration filing could come before the end of the year. Today, NVAX stock has given up another 4.5%. So what is going on?
Let’s dive into what is weighing on this vaccine maker today.
What’s Behind Today’s Decline in NVAX Stock
Leading into today, investors have been getting antsy with Novavax. Many were hopeful that by the end of the year, the company would file with the FDA for emergency-use authorization. However, that filing did not come. Instead, the company announced today that it has filed its last data packages with U.S. regulators. In terms of timeline, that means Novavax now intends to file for emergency-use authorization in the U.S. by the end of January 2022.
Besides the delay on the FDA filing, there’s another catalyst driving NVAX stock today. A POLITICO article released this morning highlighted concerns not only with respect to Novavax’s ability to get its drug approved by the FDA, but also concerns around the production capacity for this vaccine maker.
Unsurprisingly, these concerns were met with a certain amount of vitriol by Novavax supporters on social media. Some supporters did note concern with Novavax’s self-imposed deadline of an FDA filing before the end of the year. However, this article highlights a number of other headwinds many seem to think are unwarranted.
Currently, Novavax’s approval process in the U.S. is the key catalyst that’s driving investor interest in this stock. That said, outside of the U.S., tremendous opportunity lies for Novavax to grab market share and deliver vaccines. We’re far from the end of the pandemic, and Novavax could provide the incremental vaccine doses the world needs.
On the date of publication, Chris MacDonald 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.
