Here are a few billion reasons to hold Novavax shares


Novavax (NASDAQ:NVAX) stocks were in the spotlight on Wall Street in 2020 with the emergence of the Covid-19 pandemic. As a result, people who owned NVAX shares received unexpected profits that they probably did not expect.

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But that was then and it is now. Novavax is facing a tough battle in 2022, as vaccines against Covid-19 from competing companies are already widely available.

Nevertheless, the spread of the strain version of omicron reminded people that the fight against Covid-19 involves many companies – not just one or two. Internationally, Novavax could build a foothold, even if it cannot dominate the US vaccine market

In any case, it is obvious that the CEO of Novavax is not panicking about the future prospects of his company. His self-confidence is encouraging – and he has just made a prediction that should impress even the most stubborn critics.

A closer look at the NVAX share

NVAX shareholders may never experience a different bull market than they had in 2020 and early 2021. Surprisingly, the stock started in 2020 at $ 4 and then rose to $ 170 in August of that year.

In February 2021, another vertical shift in the share price occurred. This time it is likely that Reddit dealers were involved in the rally.

During this rise, NVAX shares rose to $ 331.68. Unfortunately, traders who chased a stock near the top were severely punished for their mistake.

The bad news is that the Novavax share price has fallen to $ 120 twice after reaching its highest value: once in May 2021, and then more recently, in January 2022.

Is this really bad news? If $ 120 is an established level of support, then this may be a great purchase price as well – assuming you believe Novavax has a bright future.

A little Rocky at first

Recently, Novavax CEO Stanley Erck discussed his company’s progress in getting doses of the Covid-19 vaccine, NVX-CoV2373, to as many people as possible who need it.

As Erck pointed out, Novavax focused on low- and middle-income countries are the first to distribute their Covid-19 vaccine.

It is not easy to send vaccines to these countries while “trying to meet other obligations,” as Erck said. Therefore, the CEO admitted, “it will be a bit difficult at first.”

NVAX shareholders certainly understand what it means to face a stony situation. However, Erck offered some prediction or two that should arouse some optimism and enthusiasm.

“We are on the right track to do what we said we would do, that is, to get to the point where we can make a few billion doses this year,” Erck said. “So we’re on stage – we have more than 200 million doses a month this quarter by the end of this quarter.”

Approvals abroad

That’s a lot of doses and a lot of confidence. In fact, it’s great to know that Novavax is aggressively expanding its vaccination goals.

With this, Novavax is truly becoming a multinational company. The company is, for example merge with Serum Institute of India apply for an Emergency Use Authorization (EUA) in South Africa for Novavax Covid-19.

The EUA is submitted to the South African Health Regulatory Agency for NVX-CoV2373 with Matrix-M adjuvant. This could change the game, as the Serum Institute of India (according to Novavax) is the world’s largest producer of vaccines by quantity.

In addition, Novavax and SK Bioscience only received approval for NVX-CoV2373 of the South Korean Food and Drug Administration.

Specifically, the approval was for an application for a Biological Medicines License (BLA). This will make the NVX-CoV2373 the first COVID-19 protein-based vaccine to be approved for commercial use in South Korea.

Bottom line

It is true that Novavax is not very successful in competing with Big Pharma in the US. However, there are also international markets that need to be addressed.

Novavax is working hard to approve and distribute NVX-CoV2373 in several countries. The company seems to be focusing on low- and middle-income populations, which is commendable.

But will it also be profitable? That remains to be seen – but the future looks bright, given the CEO’s ambition for a billion doses.

On the day of publication David Moadel did not hold (directly or indirectly) any positions in the securities referred to in this Article. The opinions expressed in this article are those of the author and are the subject of Guidelines for publication.

David Moadel provided compelling content – and occasionally crossed the line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga and (of course) He also serves as principal analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


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