Novavax, Inc. (NASDAQ: NVAX) isn’t having the best of starts to the trading session in the pre-market hours this morning. In fact, the stock is trading in the red. However, given recent news surrounding the company, many are wondering if this is a dip worth buying. Today, we’ll talk about the value proposition surrounding NVAX, what we’re seeing from the stock today, and what we’ll be watching for ahead.
NVAX And NanoFlu
However, the biggest value proposition with regard to NVAX, in my opinion, is the work the company is doing to create a nanoparticle influenza vaccine. That’s a fancy way of saying a vaccine for the flu. The reason that this is the biggest value proposition is that the flu vaccine market is a massive one, and more and more, we’re seeing examples of currently approved vaccines failing to prevent the flu.
This is where NVAX comes in. While current vaccines on the market, provided by companies like GlaxoSmithKline (GSK) and Sanofi (SNY) simply aren’t working as well as they used to. However, Novavax’s NanoFlu vaccine is proving to be incredibly effective, and if it provides the kind of protection that early data suggests, it could be massively profitable. So now, we’re at a point where one of the following outcomes is likely:
- Best Case Scenario – In a best case scenario, the data that should be coming relatively soon surrounding NanoFlu will be overwhelmingly positive, as data we’ve received thus far has been. In this scenario, the data would lead to takeover demand from GSK and SNY as the two company’s look to protect their currently approved products from upcoming competition. So, in a best case scenario, a takeover with a strong premium is on the horizons.
- Still A Pretty Good Option – In another scenario, the data that is released surrounding NanoFlu would be positive. While it wouldn’t lead to an acquisition attempt, it would lead to further studies and ultimately approval by the FDA. When this happens, the strong data from NanoFlu clinical studies would lead to the vaccine taking a large chunk of the flu vaccine market in the United States and abroad. That’s still not a bad thing!
- Worst Case Scenario – In a worst case scenario situation, data surrounding NanoFlu would be negative. In this case, the company would likely need to abandon the asset and fall back on its other assets under development. Of course, in this case, we’d see some serious pain in the value of the stock.
What We’re Seeing From The Stock
If you’re considering jumping into Novavax, now may be the right time. After all, the stock is in the red, and if you believe that gains are head, today’s declines represent a discount. Currently (8:58), NVAX is trading at $2.34 per share after a loss of $0.05 per share or 2.09% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NVAX. While we will be watching for updates surrounding all assets under development as well as other corporate updates, our primary focus will be on the company’s NanoFlu vaccine. After-all, if coming data is positive, this vaccine could be a massively valuable asset. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks.
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