Why is Novavax (NVAX) stock up 20% today?

NVAX Stock – Why Are Novavax (NVAX) Shares Up 20% Today?

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Novavax (NASDAQ:NVAX) is in the process of recovering from the collapse in late 2021. Recently, management said the latest vaccine version, which targets newer Covid-19 subvariants, is more effective than older shots.

According to a Reuters In the report, vaccine makers presented data from animal research showing that “their 2024-25 vaccinations, targeting the JN.1 variant that was dominant earlier this year, were able to neutralize newer subvariants such as KP.2 much better than the older vaccinations.” Novavax and other vaccine developers, including Pfizer (NYSE:PFE) And Modern (NASDAQ:MRNA), met with advisors from the US Food and Drug Administration (FDA) about the issue.

In terms of timeline, the latter two companies said they could introduce vaccines targeting JN.1 or the latest KP.2 subvariant. However, Novavax stated that it will be able to offer its vaccine in the fall, provided “regulators accept the shot that it has begun production to target the JN.1 variant.”

Novavax is using a “more traditional protein-based” approach with its vaccines, which could appeal to those concerned about the mRNA-based approach favored by Pfizer and Moderna. However, Novavax’s vaccine takes longer to make.

The nasty Covid-19 crisis could benefit NVAX Stock

Before the pandemic was The New York Times detailed that Novavax was “on the verge of collapse.” At the time, one of the leading vaccine candidates had repeatedly failed in trials. In a cynical and ironic sense, the devastating Covid-19 crisis gave NVAX stock a crucial lifeline.

Throughout 2021, Novavax enjoyed a triple-digit price tag. Unfortunately for stakeholders, NVAX stock became volatile towards the end of the year.

The downturn was largely uninterrupted as Covid fears faded. Yet, even as society reopens, Covid remains a substantial health threat, especially for people with underlying conditions.

According to the Centers for Disease Control and Prevention (CDC), Covid-19 was ranked as the “10th most common cause of death in the US for 2023.” To be fair, this placement represents a significant drop from third place in 2020 and 2021 and fourth place in 2022. Nevertheless, Covid is still a deadly virus, especially for those at risk. That partly explains the rise in NVAX shares today.

As of the date of publication, Josh Enomoto did not have (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication Guidelines.

Josh Enomoto, a former senior business analyst at Sony Electronics, has helped broker major contracts with Fortune Global 500 companies. In recent years, he has provided unique, critical insights for the investment markets, as well as for several other industries, including legal, construction management and healthcare. Tweet him at @EnomotoMedia.