After Being Unloved on Wall Street, Novavax Deserves a Shot
InvestorPlace - Stock Market News, Stock Advice & Trading TipsNVAX stock was a darling of the markets once and could be again, given Novavax's recent progress in advancing Covid-19...
Best known for developing Covid-19 vaccine NVX-CoV2373, Maryland-based Novavax (NASDAQ:NVAX) seeks to provide novel products to prevent a broad range of infectious diseases. Some so-called Covid-19 stocks have risen quickly and fallen sharply, and NVAX stock certainly fits that mold.
There's no denying that Novavax isn't among the most dominant company in the U.S. Covid-19 vaccine market. Probably as a result of this, Wall Street seems to have practically abandoned Novavax as an investable business.
Yet, this story might still have a storybook ending. NVAX stock could rise from the ashes and revisit its prior peak price. As we'll see, is a high but attainable target.
Just the month of February has already provided a slew of encouraging news for Novavax's investors. Really, it should only be a matter of time before all of the positive developments are priced into the shares.
A Closer Look at NVAX Stock
As you would expect, NVAX stock received a major boost during the initial onset of Covid-19 in 2020. Astoundingly, after having once traded at $4, the stock soared to around $330 in February 2021.
By the way, early 2021 was a time when Reddit users were orchestrating short squeezes on certain stocks. So, they may have contributed to the jaw-dropping ascent of the Novavax share price.
Unfortunately, the buyers (Reddit users and otherwise) apparently weren't willing or able to keep NVAX stock afloat. At this writing, the stock trades in the low $80s.
Getting back to the $300s will be a major challenge, admittedly. Yet, it's possible if the buyers can break through the key $135 and $220 resistance levels.
Of course, NVAX stock will have to surpass and hold $100 before other price levels will be on the radar. Anything's possible, though, as biopharmaceutical stocks are known for making swift moves in both directions.
Vaccines for Practically Everyone
In an investor presentation, Novavax identifies a broad range of market opportunities for advancing NVX-CoV2373. It's evident that the company is prepared to administer Covid-19 vaccines to multiple demographics, as soon as it's legal to do so.
The identified market opportunities include primary vaccination, booster vaccination (including against variants) and pediatric vaccination (ages 12 through 17).
Novavax indicated that in lower-income and lower-middle-income countries, 88% of the 12-to-17-year-old population is un-vaccinated/not boosted. The implication here is that there's still a vast addressable market for the pediatric use of NVX-CoV2373.
Thus, it's great news that NVX-CoV2373 demonstrated 82% clinical efficacy against the delta variant in a recent study involving 2,247 adolescents aged 12 through 17 years.
The preliminary safety data further showed that the vaccine was "generally well-tolerated." Serious and severe adverse events were reportedly "low in number," moreover, and were "not considered related to the vaccine."
The Effort Is Global
While Novavax is working diligently to get people of various age ranges vaccinated, the company is also expanding its outreach to a number of geographic regions.
In just two weeks' time, Novavax issued four different announcements pertaining to the company's multi-national initiatives:
- Feb. 3: New Zealand's Medsafe granted provisional approval of NVX-CoV2373 to prevent Covid-19 in individuals 18 and older.
- Feb. 10: the first dose of Novavax's Nuvaxovid Covid-19 vaccine was administered in Australia.
- Feb. 14: the Singapore Health Sciences Authority issued interim authorization for Nuvaxovid to prevent Covid-19 in individuals 18 and older.
- Feb. 14: Novavax announced its submission to Swissmedic, the Swiss Agency for Therapeutic Products, for conditional marketing authorization of NVX-CoV2373.
That's a whole lot of global progress in just a couple of weeks, wouldn't you agree?
It's as if Wall Street is simply ignoring Novavax's milestones in advancing its Covid-19 vaccines around the world. Perhaps it won't be long before more investors finally see the true value of NVAX stock.
The Bottom Line
How much longer will the American investing community treat Novavax like an also-ran among vaccine developers?
There's no way to predict the future, but Novavax has the potential to become the pharmaceutical industry's comeback story of the year.
Therefore, don't be deterred by the drawdown in NVAX stock. Given Novavax's tireless efforts to combat Covid-19 on a global scale, the share price should get an upward revision sometime soon.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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