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Why Novavax Stock Is Moving Higher Today

By Keith Speights – Oct 27, 2020 at 11:51AM

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The biotech gave an encouraging update about its late-stage coronavirus vaccine program.

What happened

Shares of Novavax (NVAX -1.25%) were moving 4.8% higher as of 11:01 a.m. EDT on Tuesday after rising as much as 7.2% earlier in the day. The gain came following Novavax's update on its coronavirus vaccine candidate NVX-CoV2373. 

So what

Novavax reported mainly good news with its update today. The company said that it has enrolled over 5,500 participants in its late-stage study of NVX-CoV2373 in the U.K. This study has been expanded to enroll 15,000 participants. Novavax expects that the U.K. trial will be fully enrolled by the end of November.

Doctor holding vaccine bottle with syringe and needle

Image source: Getty Images.

What about the highly anticipated U.S. late-stage study of NVX-CoV2373? Novavax plans to begin this clinical trial and a phase 3 study in Mexico by the end of November.

The one small negative with Novavax's update was that it's behind on the manufacturing of its coronavirus vaccine candidate compared with the company's original timeline. However, Novavax stated that it has "made significant progress in large-scale manufacturing" of NVX-CoV2373.

Now what

Novavax is scheduled to present data from its ongoing phase 1/2 study of NVX-CoV2373 at the Centers for Disease Control and Prevention (CDC) Advisory Committee on Immunization Practices (ACIP) meeting on Oct. 30. This presentation, which will be open to the public, will include new data about how the vaccine candidate produces common adverse reactions.

Perhaps the biggest potential catalyst for the biotech stock, though, could come in early next year. That's when Novavax anticipates reporting interim data from its U.K. late-stage study of NVX-CoV2373, although the exact timing depends on the overall COVID-19 attack rate for participants in the study.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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