Shares of Novavax (NASDAQ:NVAX) stock showed impressive volatility around April 13. At that time, Swiss officials authorized Novavax’s Nuvaxovid vaccine for conditional use against Covid-19. That news sent NVAX stock upward for the day by roughly 5%. A day later, the stock had given back those gains. So what gives? 

It’s probably a combination of a few factors. The most prevalent of which is that its vaccine still lacks U.S. Food and Drug Administration (FDA) approval. While Nuvaxovid has gained World Health Organization (WHO) Emergency Use Listing in 37 countries, the U.S. is not on that list. 

That could be a gamechanger for the firm and would open up revenue streams that should move the NVAX stock price rapidly upward. If Novavax ultimately gains FDA approval for Nuvaxovid, it has a strategy that makes a lot of sense. 

Nuvaxovid is a protein-based shot developed using decades-old technology. The thinking is that it could prove to be more readily accepted by those who are skeptical about the mRNA-based shots developed by Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE). 

The fact that Novavax share prices initially spiked on the news implies there is plenty of potential left in the stock. That shares dropped a day later simply reiterates the idea that FDA approval still matters. But bulls should remain steadfast. According to Yahoo! Finance, the firm is on track for more than 290% year-over-year sales growth in 2022. 

Overall, the developments remain promising for the Maryland-based firm. Biotech plays remain stunted, yes, but NVAX stock has massive upside built into analyst consensus prices. Those predictions rely heavily on FDA approval. If and when that comes, NVAX will soar. And if it proves it can sway those more hesitant to take other vaccines, the stock could move higher again.

On the date of publication, Alex Sirois 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.