Why has Novavax Stock jumped higher?
Novavax (NASDAQ: NVAX) shares started in June at around $ 150 per share. A few weeks later, those same stocks are now worth $ 200. Why are bulls sending this biotech stock higher?
In this clip from fool live, healthcare and cannabis bureau chief Corinne Cardina and Fool.com writer Taylor Carmichael discuss the recent increase in Novavax shares. This segment was recorded on June 18.
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Corinne Cardine: Let’s start with Novavax. Of the three vaccines licensed in the United States, according to the CDC, about 44% of adults are fully vaccinated in the United States. But we’re not necessarily done seeing new vaccines come to market. Taylor, what have we heard from Novavax this week and how has the market reacted?
Taylor Carmichael: Well, Novavax had two big things happening in the past couple of weeks. The first thing that happened, the Biden administration lifted its grip on the raw materials companies need to make vaccines. The Biden administration had put it on hold to keep these materials in the United States, which really hurt Novavax as their manufacture is mostly overseas. They were making a billion doses of vaccine in India. It was great news, when the Biden administration finally lifted that holdback, and it allowed the Serum Institute of India to start ramping up production. This was a huge boon for the stock, as the delays in production from Novavax had brought the stock to exceed $ 300 per share when it had positive phase 3 data and fell to $ 120 somewhere there- in. After this news broke, it climbed back to around $ 200 per share. It was really good news. The other good news that has happened is that Novavax has positive Phase 3 data from its US trial. This is very similar to their Phase 3 trial which they did in the UK. It’s basically the same data, but it just reaffirms that it’s a great vaccine, that it’s as good as the Moderna vaccine, as good Pfizer vaccine.
They had 90% overall efficiency. One of the main differences, as in their first phase, the Phase 3 trial, was that they were 96% effective against the original strain of COVID-19. These three biotech companies created a vaccine against the original strain of COVID-19 last year. But in the case of Novavax, we are also seeing data against the mutant strains. In England, they were 96% effective against the original strain and 89% overall effectiveness against the British variant and other existing variants. This new trial, I believe it’s 30,000 people in the United States and Mexico, they had an overall effectiveness of 90%. We didn’t see a split between the original strain and the variants, but it’s probably about the same as the UK study which had an overall efficacy of 89%. Novavax reported that almost everyone who contracted COVID after being vaccinated has received one of the variants. These original vaccines are not as protective against the variants as they are against the original strain of COVID-19. The market liked. It wasn’t a big jump, moved a bit. I think the market was basically expecting positive phase 3 data for Novavax because they already had a phase 3 trial. This is the second phase 3 trial. But they’re really close to getting their emergency use authorization. The company thinks so strength happen this month, but it’s likely going to happen in the third quarter of July.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.