Please ensure Javascript is enabled for purposes of website accessibility

Why Novavax Stock Popped Today

By Prosper Junior Bakiny - Apr 27, 2021 at 4:40PM

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's coronavirus vaccine was mentioned by a very powerful person.

What happened?

Shares of clinical-stage biotech Novavax (NVAX 2.80%) jumped on Tuesday following an endorsement (of sorts) of the company's potential coronavirus vaccine, NVX-CoV2373, from President Joe Biden. Novavax's stock closed today's trading session up by 16.3% after jumping by as much as 19% earlier in the day. 

So what

Today, President Biden discussed his intention to send vaccines to other countries where COVID-19 continues to wreak havoc, one of which is India. It is in this context that the president briefly mentioned Novavax by name. According to an article published by The Financial Times, Biden said:

I've discussed with [Narendra Modi, India's prime minister] when we'll be able to send actual vaccines to India, which will be my intention. The problem is right now we have to make sure we have other vaccines. We have Novavax and others coming on, probably, and I think we'll be in a position to be able to share vaccines as well as know-how with other countries who are in real need. That's the hope and expectation.

Face mask with "COVID-19" written on it.

Image source: Getty Images.

Now what 

Novavax's vaccine, NVX-CoV2373, proved 100% effective against severe cases of COVID-19 in a phase 3 clinical trial. It also seems potent at preventing severe manifestations of the disease caused by some of the newer variants of the virus. The company plans to file for emergency use authorization in the U.S. and the U.K. in the second quarter.

The biotech also has agreements set up to supply about 200 million doses of its vaccine to various governments worldwide. Today's comments from President Biden are certainly welcome for Novavax and its shareholders, but truth be told, it is little more than icing on the cake for the biotech company

Prosper Junior Bakiny 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.

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.
$41.47 (2.80%) $1.13

*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 analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

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.