Novavax (NVAX) Stock Falls: Buy The Dip, Thank Me Later

Novavax NVAX Stock News

Novavax, Inc. (NASDAQ: NVAX) didn’t have the best of times in September. Starting the month off around $170 per share, it closed the month out at around $110 per share. Today, it’s falling more, now down to $105.

The dip is painful for investors.

Nonetheless, there’s a huge opportunity here. This dip may be one of the biggest buying opportunities of the year. Here’s why:

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NVAX Stock & COVID-19

COVID-19 has become a painful reality. It has changed the way we live, eat, and visit family. We all want it to come to an end. Novavax is one of the companies in the fight against the pandemic.

The company is currently working on a COVID-19 vaccine. In fact, it is on the Phase 2 side of a Phase 1/2 clinical trial. While it’s not likely to be the first approved vaccine, if trials go well and it is approved, this could be a huge opportunity.

The fact of the matter is that COVID-19 isn’t going away any time soon. It’s a coronavirus, just like the virus that causes the common cold. We’ve learned a few important things from the common cold. First and foremost, coronaviruses are very difficult to vaccinate against. If it was easy, it would have been done with the common cold.

Also, if immunity is achieved, it won’t last forever. Every time you get the cold, you have a week or so of painful symptoms. You get over it. 2 or 3 years later, you get the cold again. That’s because the immunity that was caused by you having the cold 2 or 3 years ago has worn off.

Not everyone will get vaccinated. Getting rid of an illness through vaccination requires herd immunity. However, there are quite a few consumers in the United States that do not believe in vaccines and will refuse to get one, further leading to overall efficacy issues in vaccines and their ability to get rid of COVID-19 for good.

Immunity against coronaviruses will not last forever, natural or by way of vaccine.

As a result of this issues, I believe that there will be a long-term need for multiple effective vaccines to protect against COVID-19. So, even if NVAX isn’t the first to bring a vaccine to market, there’s a strong chance that when it brings one to market, it will represent a massive opportunity.

A Bigger Opportunity Than COVID-19

The opportunity surrounding the COVID-19 vaccine under development at NVAX is an impressive opportunity. However, I believe that the real opportunity lies in NanoFlu, the company’s vaccine candidate for seasonal influenza.

In a recent Phase 3 clinical trial, NanoFlu proved to be more effective than the current standard of care in flu vaccines, developed by Sanofi, in elderly, high-risk populations. With the strong Phase 3 data, the company will likely achieve FDA approval relatively soon.

That’s a huge opportunity, allowing Novavax to tap into a market that could be worth over $7 billion per year by the year 2026. With NanoFlu proving to be more effective than the current standard of care, it could become the standard of care for elderly populations shortly after approval.

Considering the success in elderly populations, NanoFlu is likely to be more effective in the overall population. Therefore, the vaccine could become the standard of care across the board. That’s a multi-billion dollar per year opportunity.

The Bottom Line

The bottom line here is simple. Novavax shot up like a rocket, then dipped. However, there was a reason for the original dramatic gains, and there’s a reason to be excited about the company in the future.

Given the positioning of NVAX in both, the COVID-19 and the seasonal influenza markets, the opportunity surrounding the stock is hard to ignore.

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