Article on Reuters said that The U.S. Food and Drug Administration (FDA) announced its approval of an updated version of Novavax's COVID-19 vaccine for emergency use in individuals aged 12 and older, leading to an 8% increase in the company's stock.* Novavax, which relies on the COVID vaccine as its primary product, has implemented cost-saving measures and views the commercial sales of its updated vaccine as vital for its financial health. Last month, the U.S. Centers for Disease Control and Prevention (CDC) greenlit the broad use of updated COVID vaccines from Pfizer and BioNTech, as well as Moderna, for individuals aged six months and older during the country's autumn vaccination campaign. The CDC's Advisory Committee on Immunization Practices (ACIP) will not convene again to evaluate the Novavax vaccine, as its previous recommendation encompassed all FDA-licensed or authorized updated COVID-19 vaccines, including those expected to receive approval in the future. Novavax faced challenges during the pandemic vaccine rush, causing delays in seeking approval, unlike its mRNA-based competitors.
Amazing news for the company, which has already taken effect on their stocks. However, it could cause some troubles for their competitors Moderna and Pfizer. Article continued that the original Novavax COVID vaccine received authorization in the United States in July 2022, significantly later than the Pfizer and Moderna vaccines. By early May, data showed that fewer than 90,000 Novavax shots had been administered. Novavax's CEO, John Jacobs, mentioned that the company is awaiting FDA approval to release the first batch of the updated vaccine, which is expected to occur in the next few days or, at the latest, the following week. He anticipates that the vaccine will be widely available in various retail establishments, healthcare providers, and government programs throughout the U.S. With the government no longer covering vaccination expenses for millions of Americans, potential insurance coverage hiccups, which have hindered the uptake of other vaccines, may provide an opportunity for Novavax to catch up. Jacobs emphasized that there is strong demand, and this marks just the beginning of the vaccination season.
Movement of Novavax stocks in the last five years. (Source: Investing) *
* Past performance is no guarantee of future results.