Novavax (NVAX) Stock Heads Up As $8 Billion Is Put Up For Grabs

Novavax NVAX Stock News

Novavax, Inc. (NASDAQ: NVAX) is having a tremendous start to the trading session this morning, trading on gains of around 10% very early on. While the company hasn’t issued any press releases or filed anything with the SEC, there’s a good reason for the run. Investors are excited about $8 billion that will be put up for grabs to fight against the coronavirus. Here’s what’s going on:

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NVAX Stock Pops On Potential Funding Ahead

As mentioned above, Novavax hasn’t issued any news of its own this morning, but it didn’t have to. Late yesterday, news broke that The Hous passed a roughly $8 billion emergency funding bill. The funds will be used to fight the coronavirus spread across the United States.

This is great news for NVAX and others that working to create vaccines and treatments to address COVID-19. Ultimately, the bill will provide $7.8 billion in funding, which includes a mandatory funding authorization for $500 million over 10 years to be used toward a remote health program.

Importantly, the bill includes wording that requires funds to be used specifically for the fight against the Wuhan coronavirus and other infectious diseases. This makes it so that it’s not possible for high-level government representatives to raide the funding for use in unrelated purposes.

In a statement, Senat Appropriations Committee Chairman Richard Shelby, R-Ala, had the following to offer:

This should not be about politics. This is about doing our job to protect the American people from a potential pandemic. We worked together to craft an aggressive and comprehensive response that provides the resources the experts say they need to combat this crisis. I thank my colleagues for their cooperation and appreciate President Trump’s eagerness to sign this legislation and get the funding out the door without delay.

Why This Is Such A Big Deal For Novavax

When it comes to the fight against the spread of COVID-19, vaccines are going to play a crucial role. While it seems like every company in the world wants to create a vaccine for the virus right now, there are only a handful that actually have viable options, NVAX is one of those.

In fact, in a recent press release, the company announced that it has progressed the Wuhan Coronavirus vaccine development program. In fact, the company said that it has already created multiple nanoparticle vaccine candidates. These candidates are currently being assessed in animal models in order to chose the best candidate for human testing. In spring of this year, the most viable candidate will be entering a human testing program.

This is overwhelmingly important here. While nearly $8 billion is up for grabs, the government isn’t just going to blindly hand the money to companies that ask for it. Those that hand out this money will be looking for evidence these companies are onto something, and NVAX is one of very few that actually already have something.

With that said, it’s my belief that the company sands a strong chance of receiving a share of this funding. Considering that human testing is important, yet very expensive, we may hear about funding before the human trials start in spring! All in all, this is yet another reason to be excited about the work being done at NVAX.

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