What happened

Shares of Novavax (NVAX 8.40%) were skyrocketing 28% higher this week as of the market close on Thursday, according to data provided by S&P Global Market Intelligence. On Tuesday, the European Union authorized Novavax's COVID-19 vaccine Nuvaxovid for adolescents ages 12 to 17. Novavax also announced on Thursday that the European Medicines Agency (EMA) approved SK bioscience as a supplier for Nuvaxovid.  

So what

Both of Novavax's developments this week were catalysts for the vaccine stock. However, shares jumped the most on Thursday after the EMA's approval of SK bioscience.

It's likely that the overall stock market gains on Thursday also played a big role in Novavax's share price rising so much. All of the major market indexes were up, with the Nasdaq Composite Index leading the way.

The EMA's approval of Sk bioscience as a supplier for Nuvaxovid gives Novavax a second source for its COVID-19 vaccines in the European Union. Novavax previously depended on the Serum Institute of India to manufacture its vaccines for the European market. SK bioscience already makes Nuvaxovid for the South Korean market. 

As of June 30, 2022, more than 12.6 million doses of Nuvaxovid had been administered to individuals in the European Union. The authorization for adolescents could accelerate the adoption of Novavax's vaccine.

Now what

Novavax still awaits U.S. Emergency Use Authorization (EUA) for its COVID-19 vaccine. The U.S. Food and Drug Administration (FDA) must first complete a review of changes to Novavax's manufacturing process.

The company's biggest opportunity could be in the booster market. Novavax expects to be in a position to provide a booster targeting the coronavirus omicron variant in the fourth quarter of 2022.