Biotech giant Novavax (NASDAQ:NVAX) notched up another regulatory win for its coronavirus jab. The company’s protein-based vaccine, Nuvaxovid, was greenlit by regulators in Switzerland just days after it was approved in Thailand. Another approval is always good news for NVAX stock but the stock’s overall story is complicated.
Swissmedic, the national surveillance authority for drugs in Switzerland, granted a conditional marketing authorization (CMA) to Nuvaxovid for those aged 18 or older. It’s the first protein-based Covid-19 vaccine that got its approval for use in Switzerland. Two separate Phase 3 trials were the basis of the vaccine’s approval, one in the U.S. and the other in the U.K.
In a recent statement, Novavax CEO Stanley Erck talked about how Nuvaxovid offers something unique compared to the current vaccine offerings. He remarked how the vaccine boasted a much stronger efficacy and safety profile than the other market options.
The biotech firm has been racking up authorizations across various parts of the world. Some of these areas include the European Union, the U.K., Australia, Switzerland, Thailand, and others. Nevertheless, a big name missing from the list is the U.S., which filed for an Emergency Use Authorization (EUA) back in January. However, the Food and Drug Administration (FDA) has yet to clear Nuvaxovid for use.
There are conflicting opinions about NVAX stock, but bears seem to have a more compelling argument at this time. It’s late to the party and must incur a truckload of costs to get its vaccine approval in the U.S. Moreover, it is up against some stiff competition, who have mountains of cash for expansion. It remains a show-me story for investors, with the next few months being critical in determining its long-term trajectory. Therefore, its perhaps more prudent to avoid the stock for now.
On the date of publication, Muslim Farooque 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.