Novavax (NVAX) Stock: Is A Buyout Coming?


Novavax, Inc. (NASDAQ: NVAX) is having an incredibly strong day in the market today, and for good reason. The company is the center of takeover speculation, and to be quite honest, it makes a ton of sense. Today, we’ll talk about the takeover speculation, what we’re seeing from the stock, and what we’ll be watching for with regard to NVAX ahead.

NVAX Is The Center Of Takeover Speculation

Before we get into the story here, the idea of a takeover is nothing more than speculation at the moment. There has been no sign of interest from a suitor nor any announcement from Novavax themselves surrounding a potential takeover. Nonetheless, the speculation is very interesting. Ultimately, the buyers in the center of the speculation are GlaxoSmithKline (NYSE: GSK) and Sanofi (NYSE: SNY). Here’s the story:

Recently, data showed that the current cohort of FDA-approved flu vaccines from GSK and SNY have failed to control the current epidemic of the flu. As a result, a better vaccine is needed. Of course, if one is close to approval or approved by the FDA, both GSK and SNY would likely be incredibly interested in acquiring the product or the company that created the product.  This is where NVAX comes in.

Currently, Novavax is on track to release early-stage data for NanoFlu. NanoFlu is a flu vaccine currently in early stage development. It is expected that the preliminary data from the early stages will prove to be enough to warrant an accelerated approval from regulators. Of course, if the vaccine proves to work better than what is on the market currently, it is needed to get the flu epidemic under control.

Many argue that when the data is released surrounding NanoFlu it is going to be positive and it is going to spark takeover interest. It’s hard to argue against the idea that there is a massive medical need for this product in the market and that there is takeover interest among big players in the market when this happens. So, is a takeover going to happen? No one knows, but the early-stage data that will be released soon is likely going to be a clue.

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