Shares of Novavax (NVAX 5.16%) were soaring 24.1% higher as of 12:35 p.m. ET on Tuesday. The big gain came after two positive developments for the company.
European Medicines Agency head Emma Cooke told European Union health ministers on Tuesday that Novavax's COVID-19 vaccine could be authorized in the "near future." Also, a study led by the University of Oxford found that a second dose of Novavax's vaccine following an initial dose of AstraZeneca's (AZN 0.30%) vaccine was significantly more effective than two doses of the AstraZeneca vaccine.
It's certainly not surprising that the vaccine stock jumped so much with these stories emerging today. The more important of the two is the possibility that Novavax's vaccine could soon win EU authorization.
Novavax has a supply agreement in place with the EU to provide up to 200 million doses of its COVID-19 vaccine pending authorization. The company could soon begin to generate significant revenue if that authorization is right around the corner.
However, the University of Oxford study is also encouraging for Novavax. It could increase the likelihood that Novavax's vaccine is used as a second dose in countries that are early in their vaccination efforts and that have authorized the AstraZeneca vaccine.
The potential EU authorization isn't the only one that Novavax awaits. The company has also filed for regulatory approvals or authorizations in Australia, Canada, India, New Zealand, Singapore, and the United Kingdom. Novavax plans to submit for U.S. Emergency Use Authorization of its COVID-19 vaccine by year-end.