Novavax Stock Is Tanking Despite New Covid-19 Vaccine Authorization

NVAX stock - Novavax Stock Is Tanking Despite New Covid-19 Vaccine Authorization

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Novavax (NASDAQ:NVAX) seeks to provide novel products to prevent a broad range of infectious diseases. The company is best known in the U.S. for developing Covid-19 vaccine NVX-CoV2373. However, a recent development highlights Novavax’s global ambitions in combating infectious diseases.

Sometimes, it’s tempting to just focus on how vaccine makers are faring in the U.S. Clearly, Novavax wasn’t first to market with a Covid-19 vaccine for distribution to the American public.

Yet, investors should bear in mind that there’s a global market for Covid-19 vaccines. As Novavax points out, NVX-CoV2373 is the first protein-based Covid-19 vaccine authorized in a number of major world markets. These include the European Union, AustraliaCanada and Great Britain.

Somehow, Wall Street doesn’t seem to appreciate Novavax’s progress in multiple geographic markets. Lately, NVAX stock has been trading near its 52-week lows, which is somewhat baffling.

On the other hand, it might also present a prime buying opportunity. As you may recall, the Novavax share price declined sharply from August through October of 2020, only to rally 200% afterwards.

Could another comeback be in the cards? It’s entirely possible, as Novavax just scored another regulatory win. Specifically, the company just received an emergency use authorization (EUA) from the Food and Drug Administration, but not the one you’re probably thinking of.

The EUA was granted for NVX-CoV2373, by the Thailand Food and Drug Administration. The authorization is for Covid-19 “caused by the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) in individuals 18 years of age and older.”

In Thailand, NVX-CoV2373 will be marketed under the brand name Covovax. Notably, Covovax has already received Emergency Use Listing (EUL) from the World Health Organization. Plus, it has received EUAs in India, Indonesia, the Philippines and Bangladesh.

So, don’t count Novavax out just because the company isn’t the most competitive Covid-19 vaccine maker in America. NVAX stock is at a low price now and should move higher based on Novavax’s impressive progress abroad.

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 Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, 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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