Novavax, Inc. (NASDAQ: NVAX)
Novavax is having an incredible day in the market today, and for a very good reason. The company announced early this morning that a vaccine that it is working on has been granted the FDA Fast Track Designation. Today, we’ll talk about the news and what it means, how the market reacted to the news, and what we can expect to see from NVAX moving forward. So, let’s get right to it…
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NVAX Receives Fast Track Designation
As mentioned above, Novavax is having a strong start to the trading session today, after announcing that the United States Food and Drug Administration has decided to grant the company Fast Track Designation with regard to one of its vaccines. The vaccine, known as RSVF-Protein nanoparticle or simply RSV F Vaccine, is designed for the protection of adults age 60 years and older. RSV is a deadly condition that affects thousands of adults in the United States every year. In a statement, Stanley C. Erck, President and CEO at NVAX, had the following to offer with regard to the news:
“The FDA’s granting of Fast Track Designation for our RSV F Vaccine in older adults underscores its recognition of RSV as a significant unmet medical need in this large population segment… This joins our prior Fast Track designation for the RSV F Vaccine for the protection of infants via maternal immunization. Fast Track designation could allow for an expedited timeline to licensure, accelerating the access to this vaccine for the most vulnerable populations.”
How The Market Reacted To The News
As investors, one of the first things we learn is that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect that gains in the value of the stock associated with the company will follow. Adversely, when negative news is released, we can expect to see declines in the value of the stock. In this particular case, the news that NVAX has received Fast Track Designation from the FDA for their RSV F Vaccine is overwhelmingly positive news. So, naturally, we’re seeing gains in the value of the stock today. Currently (11:17), the stock is trading at $5.86 per share after a gain of $0.36 per share, or 6.47%, thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Novavax. The reality is that the company is creating vaccines that have an incredibly large, unmet medical need. In the case of the RSV F Vaccine for older patients, this is definitely the truth. The reality is that about 900,000 medical interventions associated with RSV infections happen in the United States every year, costing the economy about $28 billion. In many cases, patients die from the infections. In fact, it is estimated that 16,000 patients die every year from RSV infection, or complications associated with the infection, in the United States. Given the results of the clinical trials surrounding the vaccine, it only makes sense that it would be approved, and given the inherent need in the medical industry, the Fast Track designation from the FDA makes sense. All in all, the RSV F Vaccine is likely to lead to strong revenue for NVAX, leading to long-run gains in the value of the stock.
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