Novavax (NASDAQ:NVAX) look to surge come market open with pre-market up 13% (at the time of writing). Novavax captured the wallets of investors last week when they received $384 million in vaccine funding from CEPI. This week NVAX is expected to captivate investors with a new all-time-high. Which seems achievable, especially if last week’s insane bullish momentum continues.
The vaccine race is heating up between Moderna, Novavax, and Inovia Pharmaceuticals. However, there can be only one winner. Novavax’s accelerated drug development, vaccine funding, and manufacturing capacity makes it a likely candidate.
How are NVAX bucking the trend?
Flashback to last week and Novavax were all over the headlines for their $384 million vaccine funding. The biotech experienced extreme investor backing, exploding by 80% in a single day. Many analysts were forecasting a sell-off on the back of Tuesday’s news. Especially as other COVID-19 players like Gilead and Co-diagnostics, and experienced terrifying pump and dumps. However, Novavax are defying the odds.
NVAX maintained its $40 high for the rest of the week. The expectation is for Novavax bull to rise even higher throughout. Last week’s controlled growth screams strong investor backing and underlying confidence in the biotech. Suggesting that NVAX could be the fittest biotech to survive the vaccine marathon.
Key upcoming events for NVAX
Novavax are set to commence its phase 1/2 clinical trial for its vaccine during mid-May. It is important to note that NVAX’s new vaccine timeline is way ahead of schedule. Meaning, if NVAX is successful, they could be the vaccine winner soon than expected. The trial involves 130 healthy patients receiving NVX in a controlled environment. NVAX expects to release preliminary safety and efficacy results in July. Positive preliminary trials results should trigger another breakout (opinion not advice).
Novavax is currently expanding its production capabilities to produce upwards of 100 million vaccines. Also, CEPI’s funding allows NVAX to achieve a large-scale manufacturing ability. Thus, investors should expect an update on Novavax’s manufacturing progress within the company month.
What are the Risks?
Novavax is at the forefront, alongside Moderna, in the COVID-19 vaccine race. However, investing in NVAX holds considerable risk. Because the possibility that investors off load gains is still high and unpredictable. Also, even if NVAX develop a vaccine testing and treatment could see the virus fizzle out. Ultimately, causing vaccine companies to lose investor backing.
Nonetheless, NVAX is bound to release more price-sensitive events in the coming months. Especially with trials starting mid-May and with results in June. Allowing you to capitalise on another breakout (opinion not advice). Only time will tell if Novavax will be able to deliver to long term shareholders on the emerging trillion dollar vaccine industry.
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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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Written by Patrick Mcloughlin, and Tyger Fitzpatrick, Senior manager of YIG, Founder.