Here Are a Couple Billion Reasons to Hold Novavax Stock

Novavax (NASDAQ:NVAX) stock came into the spotlight on Wall Street in 2020 with the emergence of the Covid-19 pandemic. As a result, folks who happened to own shares of NVAX stock received a windfall that they probably didn’t expect.

Flag with the Novavax (NVAX) logo waving in the wind with the American flag in the background
Source: rarrarorro / Shutterstock.com

But that was then, and this is now. Novavax faces an uphill battle in 2022, as Covid-19 vaccines from competing companies are already widely available.

Still, the spread of the omicron variant strain has reminded people that the battle against Covid-19 involves many companies – not just one or two. Internationally, Novavax could establish a foothold even if it can’t dominate the vaccine market in the U.S.

In any case, it’s evident that Novavax’s CEO isn’t panicking about his company’s future prospects. His confidence is encouraging – and he just made a prediction that should impress even the most stubborn critics.

A Closer Look at NVAX Stock

NVAX stockholders might never experience another bull market like they did in 2020 and early 2021. Amazingly, the stock started 2020 at $4 but then climbed to $170 in August of that year.

Another vertical share-price move took place in February of 2021. This time around, it’s likely that Reddit traders were involved in the rally.

During that run-up, NVAX stock soared to $331.68. Unfortunately, traders who chased the stock near the peak were severely punished for their error.

The bad news is that the Novavax share price fell to the $120 area twice after it topped out: once in May 2021, and then again just recently, in January 2022.

Is that really bad news, though? If $120 is an established support level, then perhaps it’s also a great buy price – assuming you believe that Novavax has a bright future.

A Little Rocky at First

Just recently, Novavax CEO Stanley Erck discussed his company’s progress in getting doses of its Covid-19 vaccine, NVX-CoV2373, to as many people who need it as possible.

As Erck pointed out, Novavax focused on low and middle-income countries first when distributing its Covid-19 vaccine.

It’s not easy to ship out the vaccines to those countries while also “trying to fulfill other obligations,” as Erck put it. Hence, the CEO acknowledged, “it’ll be a little bit rocky at first.”

NVAX stockholders certainly understand what it means to deal with rocky conditions. However, Erck offered up a prediction or two which should stir up some optimism and enthusiasm.

“We are on track to do what we have said we would do, which is to get to the point where we can make a couple of billion doses this year,” Erck said. “So we’re at a rate– we’re at a rate in this quarter of over 200 million doses per month by the end of this quarter.”

Approvals Abroad

That’s a whole lot of doses and a whole lot of confidence. Indeed, it’s great to know that Novavax is aggressively expanding its vaccination goals.

With that, Novavax is truly becoming a multi-national enterprise. For instance, the company is teaming up with Serum Institute of India to apply for Emergency Use Authorization (EUA) in South Africa for Novavax’s Covid-19 vaccine.

The EUA is being submitted to the South African Health Products Regulatory Agency for NVX-CoV2373 with a Matrix-M adjuvant. This could be a game-changer, as Serum Institute of India is (according to Novavax) the world’s largest vaccine manufacturer by volume.

Moreover, Novavax and SK Bioscience just received approval for NVX-CoV2373 from South Korea’s Ministry of Food and Drug Safety.

More precisely, the approval was for a Biologics License Application (BLA). With this, NVX-CoV2373 will be the first protein-based COVID-19 vaccine to be approved for commercial use in South Korea.

The Bottom Line

It’s true that Novavax isn’t hugely successful in competing against Big Pharma in the U.S. There are international markets to tap into as well, however.

Novavax is working diligently to get NVX-CoV2373 approved and distributed in multiple nations. The company appears to be focusing on low- and middle-income populations, which is commendable.

But, will it also be profitable? That remains to be seen – but the future looks bright, given the CEO’s billion-dose ambition.

On the date of publication, David Moadel 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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


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