Novavax Stock (NASDAQ: NVAX) is charging into 2022 with multiple potential catalysts including its final submission of clinical data to the US FDA. The outbreak of the Omicron Variant has reignited investor interests in Bio-Techs that are yet to receive approval from the US FDA and may have benefits not attainable from available vaccines.
NVAX Stock Charges into 2022
On December 20, Novavax received the green light from the European Medicine Agency recommending conditional marketing authorization for the companies COVID-19 vaccine. The recommendation comes off the back of an EUL approval from the WHO last Friday and Emergency Approval from the Phillipines and Indonesia in recent months.
Novavax and its partner Serum Institute of India, have already begun distributing the NVX-CoV2373 vaccine which has shown high rates of efficacy, comparable to that of already approved vaccines. In fact, The Atlantic highlighted that the familiar technology used in the Novavax vaccine may have beneficial traits compared newer mRNA technology vaccines such as Moderna.
With high investor interest in NVAX stock, this article will breakdown everything investors need to know as Novavax charges into 2022.
WHO approves Novavax COVID-19 vaccine in Emergency Use Listing
On December 17, the World Health Organisation (WHO) granted Emergency Use Listing for NVX-CoV2373, Novavax’ recombinant nanoparticle protein-based COVID-19 vaccine. The news drove higher than usual trading volume on Friday, as the WHO aims to expand its portfolio of approved vaccines to benefit developing countries.
“Today’s decision from the World Health Organization is vital to ensuring global access to a protein-based COVID-19 vaccine for hundreds of millions of people around the world,”said Stanley C. Erck, President and Chief Executive Officer, Novavax.
The approval comes as Novavax has already received emergency approval from the Phillipines and Indonesia. The emergency approval from Indonesia was confirmed on November 1 and doses were shipped imminently.
On November 18, Reuters reported 20 Million Novavax vaccines had been approved for export from India based on their sources. More details regarding the first revenues generated from these shipments will be highlighted in the next quarterly report.
Novavax expected to begin sending doses to Europe in 2022
More recently, Novavax received a recommendation from the EMA body to distribute the NVX-CoV2373 vaccine across the 27 Nation Bloc. Novavax now await a final decision from the European Commission, which will give Novavax the all clear to distribute NVX-CoV2373 in Europe.
Novavax and the European Commission announced an advance purchase agreement (APA) for up to 200 million doses of Novavax’ COVID-19 vaccine in August this year.
“An authorization from the Commission would deliver the first protein-based vaccine to the E.U. during a critical time when we believe having choice among vaccines will lead to increased immunization.”said Stanley C. Erck, President and Chief Executive Officer, Novavax
Today, a Reuters article outlined Novavax could begin delivering doses to Europe in the first quarter of 2022 according to an EU source. The news comes as Novavax have already submitted an Emergency Use Approval application with the United Kingdom.
Although the news is still merely speculation, it is another example of a potential catalyst for NVAX stock in 2022.
How much revenue will Novavax generate in 2022?
The average revenue forecast from Wallstreet analysts, expects Novavax to generate $4.69 Billion in revenue for the 2022 fiscal year.
This is a substantial jump from its 2021 annual revenue forecast of $1.39 Billion. In fact, higher end revenue forecasts for 2022 indicate Novavax revenues could exceed $7 Billion. In comparison, the lowest forecasts sees Novavax generating just north of $2 Billion in 2022.
Some Wallstreet analysts have also turned bullish with the uprising of the Omicron Variant. B. Riley analyst Mayank Mamtani, recently reiterated the firms Buy rating on Novavax Stock with a $305 price target.
The analyst is bullish on NVAX stock, as the omicron variant prompts the importance of a “highly effective” vaccine like NVX-CoV2373. You can read the full article on the recent coverage from B.Riley here.
The COVID-19 Vaccine market remains volatile
While Novavax has multiple catalysts expected in 2022 or potentially sooner, the stock remains a volatile play. The majority of COVID-19 based bio-techs are heavily correlated in real time to news on approvals and the current state of COVID-19 in the world.
Even approved vaccines in the United States such as Moderna see heavy fluctuations in trading activity. However, this ofcourse is to be expected as the evolving COVID-19 world remains extremely dynamic.
What’s next for NVAX Stock?
For Novavax, it boils down to capitalising on unmet demand. Recently, the WHO has expanded its EUL portfolio to create a greater diversity of vaccines to make available to developing countries.
At this stage, unmet demand has opened up revenues from Indonesia and the Phillipines, but this list is expected to grow as the NVAX vaccine can be transported at reasonable temperatures.
However, the big ticket revenue opportunities evolve around Europe and North America, and Novavax is yet to receive approval in these continents. This will be the biggest challenge for Novavax Stock come 2022.
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The content above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. 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.