Novavax, Inc. (NASDAQ: NVAX) is a stock that has attracted quite a bit of attention as of late. While the stock has had its ups and downs, it is up more than 50% year to date, and many believe that the gains are just beginning. So, what is it that has investors so excited about this stock? Today, we’ll talk about:
- Why investors are so excited about NVAX;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why Investors Are So Excited About NVAX
As mentioned above, while Novavax has had its ups and downs as of late, it’s hard to argue against the more than 50% gains the stock has seen year to date. Here’s what has investors so excited about the stock:
The RSV F Vaccine
NVAX has several promising candidates. However, the candidate that has made it furthest down the production line is the company’s RSV F Vaccine. There are ultimately three targets for this vaccine. They include infance via maternal immunization, older adults aged 60 and old, and children ages six months to five years.
At the moment, there are no approved RSV vaccines on the market. Unfortunately, the condition comes with repeat infections and lifelong susceptibility to RSV. At the moment, palivizumab is approved for the prevention of serious lower respiratory tract disease caused by RSV in children at high risk for RSV disease. However, this treatment is not approved for populations outside of this very tight indication.
At the moment, NVAX has 3 clinical trials in the works for their RSV F vaccine. The trial in infants via maternal immunization is furthest along with topline results expected in the first quarter of next year. The trials in older adults and pediatrics are in Phases 2 and 1 respectively.
NanoFlu is another exciting asset under the Novavax belt. Recently, flu vaccines have become less and less effective. However, the company’s NanoFlu vaccine has shown incredible promise in the prevention of nanoparticle seasonal influenza. At the moment, NVAX is working on a Phase 2 trial for the NanoFlu vaccine in older adults ages 65 and older.
NVAX is also working on a vaccine for Ebola. While this vaccine is in relatively early stages of development, it showed promise in Phase 1.
Combination NanoFlu/RSV F Vaccine
Finally, the company is working on a combination of the NanoFlu and RSV F vaccines. However, this combination is in preclinical phaseas at the moment.
Here’s The Exciting Part
NovaVax is a company that is working on several vaccines that are all in several different phases of development. Nonetheless, the company has several clinical catalysts on the horizons. If future data is anything like previous data, these catalysts are likely to be positive. This suggests that the more than 50% gains that we’ve seen year to date may just be the tip of the iceberg.
There’s Plenty Of Money In The Bank To Make It To These Catalysts
When it comes to clinical-stage biotechnology companies, one of the big issues is money in the bank. At the end of the day, the development of new drugs is an overwhelmingly expensive process and theese companies often have very high cash burn rates. In the case of Novavax, the company is well positioned financially to make it through the several catalysts that are likely to come out of the clinical trials mentioned above.
At the end of the most recent quarter, the company had $134.541 million in cash on hand. Adding in short term investments and other current assets, the company ended up with $203.311 million in total current assets. During the quarter, the company lost $33.5 million. If it continues at this rate, it has enough funds to get it through a year and a half of operations without the need for funding.
What We’re Seeing From The Stock
The excitement in Novavax is continuing in the market today. This can be seen in the strong gains that the stock is experiencing. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (2:10), NVAX is trading at $1.97 per share after a gain of $0.18 per share or 10.23% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets 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 move its candidates through the pipeline and into the market as several catalysts are likely just around the corner. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the iWatch Markets mailing list below!