Please ensure Javascript is enabled for purposes of website accessibility

Why Novavax Stock Is Sinking Today

By Keith Speights - Mar 2, 2021 at 11:07AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company missed analyst estimates with its Q4 results and didn't have a firm date for filing for authorization of its COVID vaccine.

What happened

Shares of Novavax (NVAX 10.52%) were 9.9% lower as of 10:31 a.m. EST on Tuesday. The decline came after the company provided its fourth-quarter update following the market close on Monday. 

Novavax reported revenue of $279.7 million, the highest total in the company's history. However, its net loss of $177.6 million was the worst ever for the biotech. Both top and bottom lines missed Wall Street estimates.

Some investors might have also been hoping that Novavax would have great news about the prospects of filing for emergency use authorization (EUA) for COVID-19 vaccine NVX-CoV2373 based on U.K. trial data. But the company only said that it's continuing to talk with the U.S. Food and Drug Administration and plans to file for EUA sometime in the second quarter.

Healthcare professional holding a vaccine vial with a syringe and needle

Image source: Getty Images.

So what

Today's move for the biotech stock is really more noise than anything else. It doesn't matter very much that Novavax missed analyst estimates at this point. The company's financial position will probably improve dramatically before long.

It's understandable why some investors might be disappointed that there isn't already a clear path to U.S. EUA for NVX-CoV2373. However, even if the FDA doesn't allow Novavax to submit for EUA based on its U.K. trial data, the company's U.S. and Mexico clinical study is expected to wrap up relatively soon.

Now what

Things should start to get quite interesting for Novavax. The company expects to file for EUA of NVX-CoV2373 in the U.K. in early Q2. A U.S. filing won't be too far behind. Novavax is also testing a six-month booster dose and vaccine candidates targeting new coronavirus variants. Today's drop could very quickly be forgotten.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Novavax, Inc. Stock Quote
Novavax, Inc.
NVAX
$57.59 (10.52%) $5.48

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
328%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.