The coronavirus pandemic may have come as a massive shock to most businesses but companies that are working on producing a coronavirus vaccine have actually seen their stocks record significant gains.
One such company is Novavax, Inc. (NASDAQ:NVAX), which has been working on a coronavirus vaccine announced positive early results with regards to its product. The update naturally proved to be a significant positive trigger for the stock and it jumped by as much as 15% as investors piled on to the Novavax stock. Investors could do well to keep a close eye on the stock.
Positive Data
The latest update from the company has come as a major positive. Novavax revealed that its experimental coronavirus vaccine was tolerated well by the patients and the common side effects proved to be ‘generally mild’. The medicine usually produces side effects like tenderness, fatigue, and headache. It is the first round of human testing of the vaccine and investors should also note that the sample size is small.
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Moreover, it has not been peer-reviewed either. On the other hand, at the same time, it is also necessary to note that Novavax has big plans with regards to a late-stage clinical trial. For that particular trial, the company is going to enroll as many as 30,000 subjects and the company aims to commence in the fall.
The company had earlier stated that if the vaccine proves to be effective then it has the wherewithal to produce as many as 100 million doses a year. Hence, if each patient needs two doses of the vaccine, then the Novavax vaccine can protect as many as 50 million people a year.
Investors should also keep in mind that money is not a problem for the company since the company has got $1.6 billion from the United States government for funding the late-stage development of its product. The company also stated that in its Phase 1 trial the vaccine managed to induce the creation of antibodies in 100% of the patients and that is something that is a major positive.
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The rally in the stock was hence completely understandable. There is a huge demand for a coronavirus vaccine and since there is no end in sight when it comes to the coronavirus pandemic, the desperation for it is only going to grow. It is also necessary to keep in mind that Novavax is not the only company that is currently working on a coronavirus vaccine. Hence, even if the company does manage to come up with an approved product, it might still have stiff competition.
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