Amid yet another volatile day in the markets, Novavax (NASDAQ:NVAX) has been one of the big losers today. Shares of this Covid-19 vaccine maker have dipped around 10% in early afternoon trading. Accordingly, investors appear to be taking an increasingly bearish stance on NVAX stock. Other vaccine stocks are down today, but not nearly by as wide of a margin.
This decline for Novavax marks a continuation of a longer-term trend. Peaking at more than $330 per share early last year, NVAX stock has now lost roughly two-thirds of its value from its peak. However, the stock has spiked on a number of occasions throughout 2021 on key catalysts.
Among the catalysts that have driven this stock higher is a World Health Organization (WHO) approval for its Covid-19 vaccine. While not yet approved in the United States, expectations are that this company is in good shape to become the latest-approved vaccine in the States. That bullish outlook has been further improved by a renewed focus from the White House on the omicron variant.
Whether it’s too little or too late is another discussion. However, there’s another catalyst driving NVAX stock lower today. So, let’s dive into what investors are watching with this stock right now.
The Catalyst Behind Today’s Decline in NVAX Stock
Today, recent commentary from Novavax’s CCO has some investors spooked. Via an interview with Yahoo! Finance, CCO John Trizzino indicated that U.S. doses of the company’s vaccine would come from the Serum Institute in India (SII). This has been circulated via social media with a very underwhelmed response from retail investors.
The fact that vaccine production is outsourced usually isn’t that big of a deal. Many major pharma giants outsource their production, for various reasons. However, the fact that Novavax has made this announcement has spurred additional concerns that the company is struggling to get its global plants — including a key facility in Texas — up and running.
While booster programs and the fight against omicron and future variants continues, NVAX stock is a name that investors are starting to get antsy with. Other established players currently control the market. As such, it remains to be seen just how much vaccine market share Novavax will be able to gobble up.
On the date of publication, Chris MacDonald did not hold (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.