Based in Maryland, Novavax (NASDAQ:NVAX) seeks to provide novel products to prevent a broad range of infectious diseases. Let’s be honest, though. Folks who trade NVAX stock are mostly concerned about the progress of the company’s Covid-19 vaccine, NVX-CoV2373.
That vaccine is what propelled the company’s share price to stunning heights in 2020, no doubt. It’s also possible that Reddit traders pushed the stock price higher in early 2021.
Of course, in the United States, other vaccine makers have beaten Novavax to the punch. Yet, let’s not forget that the battle against the pandemic is global in scope.
It seems that investors have so far ignored Novavax’s intense efforts — and the company’s numerous successes — in advancing its vaccine internationally. As a result, there’s a bargain here for risk-tolerant traders, although that bargain may not last much longer.
A Closer Look at NVAX Stock
Truly, it was astounding to witness NVAX stock start 2020 at $4 and then climb to around $170 in August of that year. Then, after the stock soared about $330 in February 2021 (probably with the assistance of Reddit), it seemed like Novavax was unstoppable.
Consider the magnitude of this price move. We’re talking about an 8,100%-plus return on investment in just over a year.
After that, though, NVAX stock exhibited volatility which rivaled that of penny stocks. By early January 2022, the stock had declined to the $140s. Soon, it fell into the $80s before the end of the month.
Now, investors have a number of options to choose from. They can wait for the share price to move lower, or just avoid it altogether. Or, they can grab a few shares now, knowing that NVAX stock bounced hard after retreating to the $80s in October 2020. Just maybe, the buyers might step in once again and boost the share price in the near future.
Advancing the Vaccine Globally
All over the world, it seems Novavax is making progress with its Covid-19 vaccine.
Currently, the company is conducting two Phase 3 trials of NVX-CoV2373 involving roughly 30,000 participants in both the United States and Mexico. In addition, the company is conducting a trial for the vaccine involving around 15,000 participants in the United Kingdom.
Data from both of those trials was published in the New England Journal of Medicine. Reportedly, the data indicated highs levels of safety and efficacy.
On top of all that, Novavax’s vaccine has been granted an emergency use listing (EUL) by the World Health Organization (WHO), as well as “conditional marketing authorization” in the European Union (EU).
Considering all of this progress, it’s shocking to witness NVAX stock trading below $100 or even below $200. But hold on — the cavalcade of good news for NVX-CoV2373 is really just getting started.
Four to Explore
Not just once but four times in January 2022, Novavax announced progress in advancing its Covid-19 vaccine throughout various regions of the world. I’ve included links to the press releases so that you can conduct your due diligence before buying NVAX stock.
Here are the bullet points:
- Jan. 10: Novavax and the Serum Institute of India (SII) file for Emergency Use Authorization of NVX-CoV2373 with the South African Health Products Regulatory Agency (SAHPRA)
- Jan. 12: the South Korea Ministry of Food and Drug Safety approves the company’s Covid-19 vaccine
- Jan. 19: the Australia Therapeutic Goods Administration grants approval for “provisional registration” of the vaccine for adults 18 years of age and older
- Jan. 28: Israel’s Ministry of Health announces a purchase agreement for up to 10 million doses of NVX-CoV2373
That last bullet point is particularly noteworthy, as it could provide a major revenue stream for Novavax. According to the advance purchase agreement in Israel, Novavax will provide an initial 5 million doses of its vaccine with an option for the country to purchase an additional 5 million as well.
The Bottom Line on Novavax
If Novavax is proving anything, it’s that the ongoing battle against the pandemic isn’t limited to any one country or continent. As the company wages a war without borders, NVAX stock could be sitting at an inflection point.
Still, investors may have to deal with continued share-price volatility for a while. Over the long run, however, we can all hope that Novavax will prevail on a global scale.
On the date of publication, David Moadel 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.
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.