Novavax (NVAX) Stock Flies On CEPI Funding News

Novavax NVAX Stock News

Novavax, Inc. (NASDAQ: NVAX) is making a run for the top in the market this morning, trading on gains of more than 50%. The gains come after the company announced that it has received funding from the Coalition for Epidemic Preparedness, also known as CEPI. Here’s what’s going on:

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NVAX Stock Soars On CEPI Funding

In the press release, Novavax said that the CEPI will invest quite a bit of money into the company. In fact, the Coalition will be investing up to $384 million in additional funding. This adds greatly to the $4 million CEPI invested in the company in March.

The funding provided to NVAX from CEPI surrounds the clinical advancement of NVX-CoV2373, the company’s candidate for a coronavirus vaccine. The company said that the funding will also be used to rapidly scale up the NVX-CoV2373 vaccine antigen, as well as its proprietary Matrix-M adjuvant.

The Matrix-M adjuvant is expected to enhance the immune response by stimulating high levels of neutralizing antibodies. The company also said that it will use the funding to aggressively scale up manufacturing capacity for both antigen and adjuvant in multiple locations.

In particular, NVAX said that the funds will be used to move forward with a Phase 1/2 clinical trial. The funds will also allow for the manufacturing of up to 100 million vaccine doses by the end of 2020, provide access to large-scale manufacturing capacity across ultiple countries, and produce up to one billion doses of the vaccine by the end of 2021.

In a statement, Stanley C. Erck, President and CEO at Novavax, had the following to offer:

CEPI plays a vital role in advancing innovative technologies against the COVID-19 pandemic. Their partnership and support allows Novavax to leverage its innovative vaccine platform and expertise in this global crisis. For the last few months, the entire Novavax team has been working nonstop in an ongoing effort to make our vaccine a reality, and we appreciate CEPI’s confidence in our technology platform and our progress.

The above statement was followed up by Richard Hatchett, CEO at CEPI. Here’s what he had to say:

The expansion of our partnership with Novavax represents CEPI’s single biggest investment to date. Our vaccine R&D programmes are starting to show progress, so it is vital that we invest now to boost manufacturing capacity, so that our partners have the ability to produce vaccines at a global scale. We still have a long way to go, but we’re making important steps forward to deliver a safe, effective, and globally accessible vaccine as quickly as possible.

This News Is Huge

Ultimately, the news released by NVAX is big for multiple reasons:

  • Funding. Non-dilutive funding is always a good thing. In the case of Novavax, the CEPI is providing hundreds of millions of dollars. These funds will greatly expand the company’s ability to develop and commercialize its vaccine.
  • Validation. The CEPI is no small fish in a big pond. The Coalition is huge and knows what it’s doing when it comes to investing in companies that focuse on epidemic preparedness. The fact that so much funding is being invested by the Coalition into NVAX is a major source of validation for the company’s work.
  • Desperate Need. There is a very desperate need for COVID-19 vaccines. With such a desperate need for vaccines, NVAX is heading in the right direction.
  • Manufacturing. For vaccines to be effective, they need to be available on a large scale. With this release, it looks as though the company has everyting it needs in order to mass manufacture its vaccine once it is ready for market.

The bottom line, is that there are plenty of reasons to be excited about NVAX stock right now.

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