Novavax (NASDAQ:NVAX) stock is down more than 8% so far today even after a promising vaccine deal with the U.S. government. The U.S. purchased 3.2 million Covid-19 vaccine doses from the biotech company. So what’s up with NVAX stock today?
This morning, Novavax released a statement announcing the agreement with the U.S Department of Health and Human Services (HHS) for its vaccine. The deal is pending Food and Drug Administration (FDA) Emergency Use Authorization as well as recommendation from the Centers for Disease Control and Prevention (CDC). As per the agreement, the protein-based vaccine will be offered free of charge to states, jurisdictions and federally-associated pharmacies.
Stanley C. Erck, President and CEO of Novavax, commented on the deal:
“We are pleased to come one step closer to potentially offering our vaccine to physicians, healthcare organizations, and consumers who have been awaiting a protein-based vaccine option … We are grateful for the U.S. government’s ongoing support and partnership to bring Novavax’ COVID-19 vaccine to the U.S., and we look forward to the FDA’s decision on an emergency use authorization.”
NVAX Stock Sinks Despite Strong Vaccine Deal
While Novavax’s announcement today should read as a solid win for the vaccine maker, investors are clearly more divisive. On an otherwise dreary day for the markets, it seems they are feeling sheepish after last Friday’s jump.
NVAX stock has been trending up for the past month, lifting its share price more than 90% in the process. Novavax and other vaccine makers have been surging lately on anticipation stemming from upcoming omicron booster shots. Novavax, Moderna (NASDAQ:MRNA) and BioNTech (NASDAQ:BNTX) stocks are all trending near three-month highs ahead of the upcoming booster campaign, estimated for this fall.
Recently, the FDA has called upon vaccine makers to address the newest dominant subvariants, dubbed BA.4 and BA.5. Offshoots of the omicron strain, the variants are more contagious than their predecessors.
Today’s slump comes as an abrupt change of pace for Novavax, especially after Friday’s strong performance. Whether the company will get back on track as it approaches its vaccine launch remains to be seen.
On the date of publication, Shrey Dua 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.