Covid-19 vaccine maker Novavax (NASDAQ:NVAX) has its fingers crossed today ahead of a World Health Organization (WHO) meeting tomorrow that will decide the fate of its vaccine. However, if NVAX stock is any indicator, prospects look optimistic on the potential EUA (Emergency Use Authorization). Investors are buying the rumor today, as Novavax is up more than 5% in early morning trading.
During a Dec. 6 CNBC interview with WHO Chief Scientist Dr. Soumya Swaminathan, Swaminathan relayed hopeful timelines for Novavax EUA approval. Indeed, she claimed it’s likely to be approved before December’s end. Additionally, she mentioned that the European Medicines Agency as well as the U.K.’s Medicines and Healthcare Regulatory Agency are also looking into Novavax. Specifically, they’re looking at the Asia/Europe version of the vaccine, appropriately named Covavax.
This likely isn’t the only news boosting the company, either.
On Tuesday, the Serum Institute of India (SII) announced plans to launch a Novavax children’s vaccine within the next six months. The Novavax shot would join Pfizer (NYSE:PFE) as the only vaccines approved for children under 12.
Novavax also reported filing data with the U.S. Food and Drug Administration (FDA). This comes after the company previously pushed back EUA approval from the FDA earlier this year.
What Else Is Lifting NVAX Stock Today?
With some manufacturers beginning to wind down production of Covid-19 vaccines, some point out massive inequality in distribution. In the face of massive stock surpluses, SII announced halving output of the AstraZeneca jab.
“I am going to be reducing production by at least 50% to begin with, going forward on a monthly basis, until orders again pick up either in India or the world. … Globally, including in India, the supply has outmatched the demand. Certain countries have only vaccinated to the tune of 10% or 15% of the population, they really need to go to 60-70%.”
The omicron variant is having diverse affects across the globe, but despite full vaccine saturation in some places, others remain woefully underprepared. According to the WHO, the African continent will likely lag behind in vaccination until the second half of 2024.
Currently, less than 8% of Africa’s population of 1.3 billion have received two doses. This comes as booster vaccines in wealthier countries are rapidly gaining approval for an increasing number of demographics.
As such, Novavax’s latest attempts at regulatory approval, especially for children, could be an effort to tap into new markets and meet demand.
Novavax has seen a marked decline over the past six months, shedding more than 15% of its stock price. This latest string of news could be the momentum necessary to push the company to new highs among other bio-pharma giants.
On the date of publication, Shrey Dua 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.
