Please ensure Javascript is enabled for purposes of website accessibility

Why Novavax Stock Jumped Today

By Keith Speights – Nov 8, 2021 at 4:32PM

Key Points

  • Novavax is bouncing back with shares moving higher after a sell-off late last week.
  • The factors behind last week's decline shouldn't impact Novavax much if at all over the near term.
  • The main things to watch for Novavax are its regulatory filings in multiple countries.

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

Investors seem to have recognized that the sell-off at the end of last week went too far.

What happened

Shares of Novavax (NVAX -6.50%) jumped 8.7% as of the market close on Monday. The solid gain appears to be the result of investors recognizing that the sell-off late last week was overdone.

The vaccine stock initially soared more than 30% earlier last week. However, a disappointing outlook from Moderna (MRNA -1.76%) and Pfizer's (PFE -0.63%) announcement of positive results for its COVID-19 pill weighed on Novavax's share price on Thursday and Friday. The stock ended the week up only 7%.

A healthcare professional about to give a person a shot.

Image source: Getty Images.

So what

Investors are probably right to think that the sell-off late last week went too far. Moderna's supply chain challenges don't negatively impact Novavax. Pfizer's COVID-19 pill (assuming it wins authorizations) likely won't have a significant effect on Novavax over the near term, either.

It is possible, though, that Novavax might face a headwind related to Pfizer's pill down the road. Governments could choose to reduce their COVID-19 vaccine purchases in a post-pandemic world with a highly effective oral therapy available. 

Still, Novavax's fortunes, for now, depend much more heavily on its own regulatory successes than they do with anything connected with Moderna or Pfizer.

Now what

Speaking of regulatory successes, Novavax hopes to have several of them in the near future. The company awaits reviews of its filings for its COVID-19 vaccine in the U.K., Europe, Australia, Canada, and New Zealand. It also could soon secure Emergency Use Listing for its vaccine from the World Health Organization. Novavax believes that it's on track to file for U.S. Emergency Use Authorization by the end of 2021. 

Keith Speights owns shares of Pfizer. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.

Premium Investing Services

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