U.S. Markets close in 3 hrs 33 mins
  • S&P 500

    +9.67 (+0.23%)
  • Dow 30

    +124.15 (+0.37%)
  • Nasdaq

    +47.74 (+0.37%)
  • Russell 2000

    -2.67 (-0.13%)
  • Crude Oil

    -3.22 (-3.50%)
  • Gold

    -20.20 (-1.11%)
  • Silver

    -0.44 (-2.12%)

    -0.0081 (-0.7937%)
  • 10-Yr Bond

    -0.0630 (-2.21%)
  • Vix

    +0.44 (+2.25%)

    -0.0069 (-0.5673%)

    -0.2650 (-0.1985%)

    -324.19 (-1.32%)
  • CMC Crypto 200

    -15.26 (-2.58%)
  • FTSE 100

    +8.26 (+0.11%)
  • Nikkei 225

    +324.80 (+1.14%)

Novavax Hopes to Reverse Past Setbacks With Covid-19 Vaccine

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Novavax Inc.'s (NASDAQ:NVAX) stock is a shadow of its former self, but shares did get a boost when the Gaithersburg, Maryland-based biotech recently received $384 million from a foundation to help the company develop a vaccine against Covid-19. To further aid in the effort, the company filed a prospectus to sell up to $250 million worth of common stock.

The latest cash infusion from the Coalition for Epidemic Preparedness Innovations brings to $388 million the foundation has funneled to Novavax, which is one of several companies working on a Covid-19 immunization.

The award was the largest to date until this week, when AstraZeneca (NYSE:AZN) received support of more than $1 billion from the U.S. Biomedical Advanced Research and Development Authority for the development, production and delivery of its vaccine. AstraZeneca plans to conduct a phase 3 clinical trial with 30,000 participants, as well as pediatric trial.

Novavax created its Covid-19 candidates using its proprietary recombinant protein nanoparticle technology platform. The company has experience working with other coronaviruses, including MERS and SARS. It hopes to have a Covid-19 vaccine candidate in phase 1 tests in a matter of weeks. The company is also scaling up manufacturing to produce 1 billion immunizations in 2021, according to an article in BioCentury.

The CEPI announcement gave Novavax shares a much needed shot in the arm, boosting its price to a year-to-date high of $61.50. Since then, the shares have retreated to around $46. About a year ago, the company was rattled by NASDAQ, which warned its stock would be delisted if the price didn't get past $1 in the following six months. Novavax avoided that ignominy by effecting a one-for-20 reverse stock split shortly thereafter.


In the past five years, Novavax has lost 80% of its value due to a number failed tests of its vaccines, the latest occurring this past September, when European regulators nixed authorizing the company's drug for a respiratory infection, according to a piece in the Washington Business Journal. In a bit of good news, the company recently announced that its NanoFlu scored encouraging top-line results in a pivotal phase 3 clinical trial. The immunization is for seasonal flu in people 65 and older.

Perhaps brighter days are ahead for the Novavax and its shareholders.

Disclosure: The author holds no positions in any of the companies mentioned in this article.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here

This article first appeared on GuruFocus.