Novavax (NASDAQ:NVAX) stock opened up more than 4% in early Monday morning trading, as investors are responding to the news from late last week that the company’s first shipments of its Covid-19 vaccine arrived in Canada. Slowly but surely, Novavax is demonstrating it’s getting its act together when it comes to manufacturing and distributing its vaccine, Nuvaxovid. And that’s good news for NVAX stock and investors.
According to Health Canada and the Public Health Agency of Canada (PHAC), Novavax shipped 3.2 million doses to the Canadian federal government. The two-dose Nuvaxovid vaccine was approved by Health Canada in mid-February for adults 18 and over, and is the only protein-based vaccine to date approved by Canadian authorities.
“The Novavax Nuvaxovid vaccine provides an additional vaccine option for those who want a protein-based vaccine or who are unable to receive mRNA vaccines,” Health Canada and PHAC said in a tweet on Thursday.
In February, the first European shipments of Nuvaxovid were shipped to Austria, France and Germany. That said, other nations in the European Union (EU) are expected to start receiving Novavax’s vaccine soon. In fact, the company has an order to deliver 100 million doses to the EU, with the potential for a second order of 100 million.
However, the biggest issue Novavax faces is that even in places such as Canada and Germany — where Nuvaxovid shipments are getting to their destinations — it appears that the unvaccinated might not be willing to get the first shot despite the more traditional nature of the company’s vaccine. According to the research group Gimbe Foundation, only 1,300 people in France got a Nuvaxovid shot in the first 10 days it was available.
In other words, the jury is still out whether the demand for Nuvaxovid will be there from the unvaccinated in Europe, Canada and elsewhere. However, as Covid-19 cases in both Europe and Canada continue to rise, the need for Novavax’s vaccine will not disappear in those regions.
Overall, Novavax’s future revenues in Europe and Canada should be enough to keep investors patient while the company waits for Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA). If — or when — that occurs will be the big payoff for NVAX stock investors.
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications, where he’s appeared, include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.