Novavax (NVAX) Stock: Working To Recover

Novavax, Inc. (NASDAQ: NVAX) is having a relatively strong start to the trading session in the market this morning, and a much needed one. The stock is working to recover from the more than 66% decline experienced yesterday as the result of a failed trial.

Nonetheless, the stock is on a rebound this morning as investors seem to be focusing on other assets that could be highly valuable. Today, we’ll talk about:

  • Why investors aren’t giving up on NVAX stock;
  • what we’re seeing from the stock; and
  • what we’ll be watching for ahead.

Why Investors Aren’t Giving Up On NVAX

As mentioned above, Novavax is having an incredibly strong start to the trading session this morning. However, today’s gains only make up a fraction of the losses yesterday. So, what’s the deal?

Yesterday, the comapny announced that its RSV-F vaccine failed to meet its primary endpoint in a late-stage clinical trial. Considering the late stage, investors were hopeful that the results of the trial would have led to a submission to the FDA. Instead, the failed trial means that the treatment is far from FDA approval, if it ever were to take place.

Nonetheless, NVAX is climbing today, and I believe that there’s a good reason for it. While the declines yesterday clearly had a cause, the drop was a bit of an overreaction. Sure, ResVAx is off the table, for now. But let’s not forget NanoFlu.

Recent clinical data showed that NanoFlu was safe, well tolerated, and effective in the prevention of the flu in older adults. This is overwhelmingly positive news as vaccines seem to be losing efficacy with each passing year.

So, while ResVax may be a cause for concern, NVAX has the ability to fall back on NanoFlu, a vaccine that, if approved, could be the goose that lays the golden eggs for the company. So, those that saw the steep decline yesterday as an opportunity to get in on the future at a discount may be onto something.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Novavax, the news yesterday proved to be negative, pushing the stock for the bottom.

This morning however, investors seem to be focused on the potential for NanoFlu to become a smash-hit vaccine. Of course, this is helping the stock to bounce back from lows caused by yesterday’s declines.

Nonetheless, our partners at Trade Ideas were the first to alert us to the gains, as is just about always the case. At the moemnt (8:06), NVAX is trading at $0.86 per share after a gain of $0.15 per share or 21.94% 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 story surrounding the company’s continued work to bring its NanoFlu product to market. There are also other trials in the works for ResVax and all hope may not be lost there as well. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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