With the race to the coronavirus vaccine underway, investors are placing their bets on Novovax (NASDAQ:NVAX) stock. Although the company has been around for decades, they are yet to produce a successful vaccine. However, the Covid vaccine trial has put Novovax back in the spotlight this year.
Although a small company compared to its Covid vaccine peers, Novovax has been making all the right moves in its vaccine trials. The biotech firm got its first big break when it qualified for $4 million in financing from the Coalition for Epidemic Preparedness. After months of trials, the company is just weeks behind some of the biggest biotech players in the sector. This has many investors scrambling to snap up Novovax stock.
Novovax’s vaccine makes progress
Given that Novovax is inching towards a successful Covid vaccine, the company’s stock has become one of the most sought after investments right now. According to JP Morgan analyst, Cantor Fitzgerald, Novovax’s NVX-Cov2372 could be one of the best vaccines on the market.
In addition to a potentially successful vaccine, Novovax has already scored some major supply deals in the U.S. and the U.K. Its supply chain is said to have an estimated capacity of two billion doses per year. If things go according to plan, the company hopes to begin Phase 3 vaccine trials this month and file for approval in December.
|P/E Ratio (ttm)||N/A|
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|Ask||107.96 x 100|
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The case for investing in Novovax stock
Given the success of its vaccine trials over the last few months, it’s no surprise that investors are putting their money behind this hot biotech stock. Just this year, the Novovax stock rallied by an impressive 4600%. As long as the company is in the running for the Covid vaccine, its stock presents a great buying opportunity.
Furthermore, there is also a lot of buzz around the firm’s NanoFlu vaccine which is on the road to approval. This influenza vaccine will work alongside the Covid-vaccine for extra immunity. The company believes it will be viable for use after the current pandemic. Sales of the Nano Flu shot could generate $1.7 billion in revenue.
Given the huge run-up of Novovax stock this year, investors will find this company a solid investment in a volatile market. Vaccine trials, by no means, provide any guarantee but investors who are looking to make some aggressive plays in the biotech space this year should consider adding Novovax stock to their portfolio.