Novavax (NVAX) Stock Gains After Receiving COVID-19 Funding

Novavax NVAX Stock News

Novavax, Inc. (NASDAQ: NVAX) is making a move for the top in the market this morning, trading on gains of more than 10% early on. The gains come after the company announced that it has been awarded funding to continue its work in the fight against COVID-19. Here’s what’s going on:

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NVAX Stock Heads Up On Wuhan Coronavirus Funding

Novavax said early this morning that it has been awarded funding from the Coalition for Epidemic Preparidness, or CEPI. In the release, the company said that the CEPI awarded initial funding of $4 million.

In particular, this funding is to be used to support the development of a vaccine for the novel coronavirus. Importantly, NVAX said that it is in the midst of ongoing dscussions with CEPI surrounding the potential for additional funding to address the company’s costs through the first phase of clinical studies.

As mentioned in previous posts, the company is ahead of most competitors in the space as it is already assessing multiple vaccine candidates. The company’s assessment of these candidates will help it to decide which one will move toward clinical trials in spring of this year.

Importantly, NVAX has already prepared to start pushing toward clinical trials. In fact, the comapny entered into an agreement with Emergent BioSolutions. Under the agreement, Emergent will supply the company with vaccine product for both preclinical testing and Phase 1 clinical testing.

Importantly, the agreement gives Novavax the ability to take advantage of the company’s rapid deployment capabilities in the future. So, if all goes well, the company is prepared to produce the vaccine for the masses.

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

This first stage of funding from CEPI is critical to enable ongoing development of our COVID-19 vaccine candidates. We commend CEPI for its role as a vital partner to bridge the funding gap for innovative biotech companies like Novavax, which have robust vaccine technology platforms. Novavax is working tirelessly to create a vaccine against this growing epidemic.

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

The current crisis shows that we cannot prevent all infectious diseases from emerging. But we can and must double down on developing vaccines. CEPI has moved quickly and urgently to coordinate with global health authorities and vaccine-development partners. CEPI is pleased to be partnering with Novavax to rapidly develop a potential vaccine candidate against the global threat posed by COVID-19.

This Stock Could Rocket Ahead

The coronavirus vaccine space is quickly being flooded. With just about every company that ever thought of developing a vaccine working to develop one for COVID-19, there’s tons of competition here. However, NVAX is well ahead of the competition.

The fact of the matter is that most of the companies that have announced that they are working on a coronavirus vaccine have little to nothing so far. These companies are stell in the R&D phases of this work. However, there are a small handful of companies that actually have something tangible, and Novavax is one of them.

As mentioned above, the company already has multiple vaccine candidates in preclinical testing. This preclinical testing will yield the most viable candidate, which will be studied in the clinic in late spring.

Importantly, once these companies do develop a vaccine, they will have to figure out how to manufacture it and get it to the masses quickly. However, it seems as though NVAX already has this together as well.

All in all, the team at NVAX has been hard at work, and their work is paying off. They seem to have everything planned and in line to get from where they are now through to commercialization. That makes this a hard stock to ignore!

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