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Novavax (NVAX) and Moderna (MRNA) stocks remain a buy amid the coronavirus economic disruption. They are 7% and 27% up in the pre-market respectively.
With the world’s quest to have an approved COVID-19 vaccine on the rise, Novavax Inc (NASDAQ: NVAX) and Moderna Inc (NASDAQ: MRNA) companies are promising to deliver on it, according to data released so far. As a result, their shares have skyrocketed in the past few months. Whereby Novavax shares have added almost 1000% since the beginning of the year to date, while Moderna stocks have added around 241% in the same period.
The driving force has been the fact that both companies are developing a vaccine that if approved will be supplied globally, where the demand is ready. With the coronavirus having infected over 4.5 million people globally at the time of reporting and killed over 300K of its victims, fears of the figure rising remains with most people.
Globally most people have resulted in staying at home, and only moving out for necessities like food, which has significantly disrupted the normal lifestyle. Governments around the world are wary of reopening their respective countries, until a verified treatment for the virus is found.
Novavax Shares amid Coronavirus
Novavax has been in the process of testing the feasibility use of its coronavirus vaccine, NVX-COV2373. The company received a whopping $388 million in research funding from the nonprofit Coalition for Epidemic Preparedness Innovations (CEPI). As a result, Novavax will be in a position to fund preclinical studies, phase 1 and also phase 2 clinical trials of the vaccine.
Previously on March 10, CEPI awarded Novavax $4 million to fund the same project. Essentially, such significant funding shows that the organization’s vaccine has a high chance of getting approved by the relevant regulators. As a result, investors are betting huge that the shares’ bull rally is in the initial stages and has a possibility of maintaining the rise for long.
The company is also developing other products like the NanoFlu – a potential vaccine for the flu to people over the age of 65-, which might see the rally rise further if approved. At the time of reporting, Novavax shares were trading at $47 having added 7.72% in the premarket.
Moderna Stock Future
Moderna has been one of the most notable biotechnology company working on developing a possible coronavirus vaccine. On May 6, the FDA finalized its review of the Moderna’s IND application, hence giving it a green light to proceed with the phase 2 trials in the coming weeks.
Besides, Moderna was awarded $483 million in April by the Biomedical Advanced Research and Development Authority to support its late-stage development programs. The company has been putting in place measures to meet the production demand, if it’s mRNA-1273 is approved, whereby the company partnered with Swiss Chemicals.
Now in the pre-market, MRNA stock is at $85.26 which means that it has already jumped 27.85%.
With such promising fundamentals in favor of the company, its share’s rise remains imminent, and most analysts are optimistic the stock will deliver on their buy call.
Check out the latest coronavirus news to stay updated.