Just when we thought we could happily live our lives without putting on a mask, we were introduced to a new Covid-19 variant. The world anxiously awaits more information on this more infectious variant, omicron, that has already spread to many countries. Amidst all the anxiety and chaos, vaccine maker Novavax (NASDAQ:NVAX) is all set to gain.
The company believes its vaccine will work against the new variant and this can lead to a massive rise in its revenue in 2022. NVAX stock has been waiting for a breakthrough for long and investors were getting frustrated but the time is here. The stock is up 13% last month and it will see more upswing in the coming months.
NVAX stock was as high as $319 in February 2021 and dipped to $121 in May 2021. Several delays in filing for Emergency Use Authorization in the U.S. led to the dip but the stock has been rising since then and is trading at $217 today. The coming weeks are crucial for NVAX stock, let us consider why.
Approval From WHO
The World Health Organization announced that they have approved Novavax’s two-dose vaccine for coronavirus for emergency use. The vaccine, Covavax can be stored at the normal refrigeration level for up to six months, making it ideal for international countries. It also gives the vaccine maker an upper hand as compared to other vaccines that have strict storage specifications. This is the 9th vaccine approved for Emergency Use.
According to the New England Journal of Medicine, Novavax’s vaccine is 96.4% effective against infection and has shown 100% efficiency in moderate to several illnesses. This is a sign that other countries could approve the vaccine soon which will lead to a rise in the demand.
Booster Shots Will Be In Demand
The rise in the number of omicron cases has led to a rise in demand for booster shots and countries are opening up boosters for adults. U.S. has already opened booster shots to all adults and it is expected that other countries will follow suit. Novavax’s vaccine could be used as a booster shot and this will lead to massive demand. The company’s vaccine booster data has shown a four-fold increase in successfully neutralizing the antibody levels.
The company has already started working on an updated vaccine that targets the new variant and it could be ready in a few weeks. Novavax is working on the Omicron-specific construct and the initial steps required for the manufacture of the specific spike are in progress and the lab-based assessment of the new strain matched vaccine will start soon. If all goes well, Novavax has a lot to gain and its vaccines will be in demand across different countries.
The Bottom Line On NVAX Stock
The vaccine approval and a rise in demand for boosters will work as a catalyst for the company and will generate massive revenue in the coming year. We will see an impressive rise in the bottom line and it will take NVAX stock to highs like never before.
Interestingly, many countries have not been able to achieve 100% vaccination yet and this means there is ample scope for Novavax to make money. We never know what shape the virus will take from here and how many boosters will we require, all the uncertainties make a strong case for Novavax.
Although late to the party, Novavax has consistently worked towards gaining approval from different countries and it has already gained approvals from the Philippines and Indonesia. Even the EU authorisation can boost the company’s revenue significantly. It has submissions across several other countries and the approvals are soon to follow.
The company is set to start the new year on a high note and the sky is the limit for NVAX stock.
On the date of publication, Vandita Jadeja 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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.
