Novavax, Inc. (NASDAQ: NVAX) is having yet another strong day in the pre-market hours this morning. Recently, the stock has been on a dramatic run toward the top. The gains have been the result of a mix between coming data and takeover speculation. However, there are tons of companies out there with clinical data on the horizon. What’s different about NVAX? What is it about this stock that has investors so excited? Today, we’ll talk about the source of excitement, what we’re seeing from the stock in the pre-market, and what we’ll be watching for ahead.
NVAX And NanoFlu
Have you had the flu this year? I have, and I have to say, it was a rough one. Unfortunately, the flu is getting more and more serious with every passing year. Many that have experienced the flu this year had their vaccines taken care of. However, those vaccines didn’t work. The reality is that the current flu vaccines on the market being provided by Sanofi (SNY) and GlaxoSmithKline (GSK) simply aren’t working as well as they used to. The flu is becoming resistant to vaccines, and that’s a scary thought!
This is where Novavax comes in. You see, the company is working on a vaccine known as NanoFlu. In results provided by the company in the past, the vaccine is showing to be more effective than current options on the market. In fact, the data that has been released by NVAX so far suggests that NanoFlu could quickly take the lead in the market. This is a massive market. In fact, the flu costs the economy more than $10 billion every year!
Think about the implications of a vaccine that actually works. How valuable could NanoFlu be for NVAX and its investors? This is where the excitement comes in. The one thing that we know is that the data released surrounding NanoFlu has been overwhelmingly positive. This is valuable. In a market where current vaccines aren’t working, there is a clear and dire need for a vaccine that does work! NanoFlu may just be this vaccine.
If it is, this vaccine threatens to shrink the revenue at both GlaxoSmithKline and Sanofi. Of course, that’s a scary concept for these companies. So, what are they going to do? Well, to be honest, no one really knows. However, if I were in charge at one of these massive biotechnology companies, I would be working to figure out how much money I would need to offer to either acquire NanoFlu as a product, or NVAX as a whole. At the end of the day, this could prove to be a massive revenue stream for anyone that owns it, and neither GSK nor SNY want to lose revenue to it.
On the other hand, even if a takeover offer doesn’t happen, Novavax is looking up. With positive data from NanoFlu so far, it is expected that this treatment will move quickly through the clinical phases, leading to regulatory approval. If this happens, even without a takeover offer, NVAX may be in possession of the only flu vaccine that has a high probability of working in today’s environment. Regardless of whether or not GSK or SNY actually make offers to acquire the company, this is an incredible source of value for the company in the revenue that it could generate.
What We’re Seeing From The Stock
As we’ve seen recently, Novavax is having yet another strong start to the trading session this morning, trading in the green early on. While the gains are relatively modest compared to what we’ve seen in recent sessions, they’re definitely there. Currently (8:25), NVAX is trading at $2.49 per share after a gain of $0.07 per share (2.89%) 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. In particular, we’re interested in following the data surrounding NanoFlu. With an update just around the corner, this stock could fly! Also, we’re interested in seeing if GSK or SNY make an offer to acquire the company. While a potential acquisition isn’t the only source of value for Novavax, it could be an exciting opportunity for the company and its investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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