NVAX Stock Dips Ahead of Potential Novavax Catalyst. What to Know.

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What a month it has been for vaccine maker Novavax (NASDAQ:NVAX) and NVAX stock. Recent weeks have brought highs and lows, thanks to vaccine catalysts and the omicron variant.

Novavax (NVAX) logo surrounded by medical supplies

Source: Ascannio/Shutterstock.com

Earlier this month, Novavax received emergency-use approval from the World Health Organization for its Covovax vaccine. This Covid-19 vaccine was the first protein-based shot to receive approval, and has garnered significant attention. This comes as Covid-19 cases continue to surge courtesy of the omicron variant.

NVAX stock surged to approximately $220 per share as of Dec. 17, the date of the announced authorization. However, since then, shares of this vaccine maker have been on a steady decline. Let’s dive into what investors may want to know about Novavax and upcoming catalysts with this stock.

NVAX Stock Declines Despite Catalysts on the Horizon

Investors in NVAX stock may be perplexed by the recent price action of this vaccine maker. Since hovering around the $220 level less than two weeks ago, shares of NVAX stock have since sunk to nearly $155 today. This wipes out most of the gains arising from the WHO catalyst.

Bulls on Novavax note that there’s another catalyst that may still not be priced in. According to a recent interview with Yahoo Finance Live, Novavax CEO Stanley Erck said that a U.S. Food and Drug Administration filing for the company’s Covovax shot could come this week.

Any sort of FDA approval, or simply the submission of an application, is bullish for investors. That said, it’s clear that sentiment on this company has declined due to various factors. Recent approvals of oral Covid-19 at-home treatments have decreased investors’ appetite for new vaccine entrants. Additionally, relatively high vaccination rates across most developed countries may limit the potential revenue stream for new entrants.

Will things turn around for Novavax, or is it too late for this Covid-19 vaccine player? Investors appear to be placing their bets right now.

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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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