It may feel like it has been awhile since investors have buzzed about Covid-19 vaccines. But Novavax’s (NASDAQ:NVAX) vaccine is precisely why its shares are making waves today. NVAX stock is currently up 10%. Specifically, the company is rallying for two reasons centering around its Covid-19 efforts.
First, Novavax just agreed to an expanded supply deal with SK bioscience. Based in South Korea, SK will help Novavax produce its vaccine, which appears to work well against the omicron variant.
Secondly, Novavax is readying itself for a review meeting with the Centers for Disease Control and Prevention (CDC). Today, investors are looking at the meeting as a potential catalyst; it may be the final step before the company has full approval for a rollout in the United States. The vaccine received an emergency use authorization (EUA) from the U.S. Food and Drug Administration (FDA) last week.
Will These Catalysts Really Help NVAX Stock?
With Novavax, yet another vaccine maker is stepping up to the plate to help fight the pandemic. NVAX stock joins the likes of Johnson & Johnson (NYSE:JNJ), Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA), among others.
However, while J&J and Pfizer have held up somewhat well through the bear market, Moderna and Novavax have not. Moderna is down 66% from its 52-week high. Likewise, NVAX is down 79% from its high. That’s despite today’s rally.
Like Moderna, Novavax has a lot hinging on the success of its vaccine. However, it’s still unclear how much the drug will move the needle.
Novavax’s vaccine is “based on more conventional technology” than its peers. So, the hope is the drug will appeal to some of the people who have not yet been vaccinated. However, one may argue that those who have not yet been vaccinated likely will not be motivated by a dose from Novavax. Or any other company, for that matter.
Still, whether or not the vaccine is received well in the States well, other countries may become buyers. All in all, these recent developments are clearly steps in the right direction. If NVAX stock can maintain recent momentum, more upside could be in play.
On the date of publication, Bret Kenwell 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.