- Novavax’ comeback continued into last week.
- Last week, the FDA announced that it will conduct a review of Novavax’s application for Emergency Use Authorization.
- With predictions of another COVID-19 surge in parts of the United States this summer, investors might be looking at vaccine demand.
What’s going on with Novavax
Novavax’s stock was skyrocketing 12.9% at 11:24 a.m. ET on Monday. The rise continues the momentum that began on Friday. That’s when the Food and Drug Administration (FDA) announced it would establish an advisory committee. The committee’s job is to review the company’s EUA application for COVID-19 vaccine.
Furthermore, investors may be more confident in the future demand for COVID vaccines in general. During an interview with CBS on Sunday, Dr. Deborah Birx, a former White House Coronavirus Response Task Force coordinator, stated that the southern United States could experience a summer surge of coronavirus infections.
Why we care
After the stock plummeted more than 80% below its all-time high set last year, it now seems several investors have jumped back on the Novavax (NASDAQ:NVAX) bandwagon. That explains why Novavax stock was skyrocketing yesterday. Moreover, the June 7 meeting of the Vaccines and Related Biological Products Advisory Committee (VRBPAC) appears to be a hopeful indication that Novavax will finally receive EUA approval for its COVID vaccine NVX-CoV2373.
Yes, the advisory panel must first deliberate. The FDA then has to make a decision about NVX-CoV2373’s approval. However, given the resurgence in Novavax’s share price, it appears that the chance of getting a thumbs-up is greater than ever before.
Dr. Birx’s warning of an increase in COVID infections hasn’t had as big an impact on Novavax’s success today. However, another coronavirus outbreak might boost the United States government’s chances of recommending Novavax’s protein sub-unit vaccine to hesitant recipients of messenger RNA vaccines.
In the meantime, Novavax continues working with the FDA on its EUA review of NVX-CoV2373. Based on previous COVID vaccines, it appears that the agency will issue a conclusion following the advisory committee meeting. The decision will likely be based on precedent set with other COVID vaccines.