NVAX Stock Jumped 25% Yesterday, Down 15% Now as Novavax Works on COVID-19 Vaccine

UTC | Updated
by Tolu Ajiboye · 3 min read
NVAX Stock Jumped 25% Yesterday, Down 15% Now as Novavax Works on COVID-19 Vaccine
Photo: Depositphotos

Novavax (NVAX) stock climbed 25% yesterday, adding to its current 2020 gains, as the company makes progress on its COVID-19 vaccine candidate. However, today NVAX is 14% down.

The race to the first approved treatment or vaccine is on, with quite a few players. According to the World Health Organization (WHO), at least 70 companies are working on fighting COVID-19, the disease caused by the coronavirus. All of the companies in the race have a few things that have helped push their stocks. On the promise of an effective COVID-19 response, some of these companies are boasting of impressive gains. One biotech company worthy of note is Novavax Inc (NASDAQ: NVAX) and the rise in its stock.

Based in Maryland, U.S., Novavax is one of the most prominent vaccine companies working on a treatment for COVID-19. Last month, the company announced that it was ready to start trials and would do so as soon as possible. Also, the Coalition for Epidemic Preparedness (CEPI) granted the company $4 million to help with its COVID-19 fight. Even though the amount was relatively small and may not do much to help the company leap forward, it was still widely regarded as very positive.

Meanwhile, Moderna Inc (NASDAQ: MRNA) and Inovio Pharmaceuticals Inc (NASDAQ: INO) are also activating their efforts. And it has a positive impact on their businesses and stocks.

While it is difficult to say whether or not the company will introduce the most effective treatment, Novavax stands a good chance among its peers.

NVAX Stock

Novavax stock has had quite a run this year, especially since the coronavirus pandemic got worse. NVAX closed yesterday at $23.80, after adding a breathtaking 25%. It has however corrected a bit, dropping to $20.29, losing about 14% now. Regardless of the loss, 2020 figures for NVAX are worthy of note. In the last one month, NVAX stock has climbed almost 68%. For year-to-date (YTD) gains, NVAX has pulled in a whopping 437.69%.

The more recent spike from NVAX came on news of its NVX-CoV2373. Many people are now hoping that more than a lot of goodwill come out of the vaccine when the trials start officially. Away from COVID-19, NVAX stock also surged late last month, when it announced positive results for its influenza vaccine candidate, NanoFlu. The candidate shows exciting results in tests carried out on people 65 and older.

However, even with all of the figures, Citron Research is not very bullish on the company’s stock. According to Citron, NVAX’s history with making vaccines for viruses is disappointing, and the stock could crash. In a tweet yesterday, Citron said:

“As much as Citron wants a vaccine, $NVAX is a serial promise and non deliver on every virus. Insiders sold most holding 85% lower last year. Bal sheet upside down and $$ is needed for NanoFlu. Expect secondary soon and stock back to $15. Retail mania!!”

Novavax might never create a proper vaccine or could be beaten to the punch by other biotech companies.

Meanwhile, the firms are already actively working on treatment. Gilead Sciences (NASDAQ: GILD) is already looking good on reports that its drug Remdesivir is reversing severe symptoms in COVID-19 patients.

But regardless of what the future of Novavax stock holds, NVAX seems healthy, at least in the short term.

Business News, Market News, News, Stocks, Wall Street
Tolu Ajiboye
Author: Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

Share this article

Related Articles