What happened
Shares of Novavax (NVAX 3.54%) were up more than 24% as of 12:08 p.m. ET on Monday after the biotech company said Friday that Canada will pay $349.6 million for unused COVID-19 shots from the company. The stock is still down more than 12% so far this year.
So what
The company specializes in vaccines. It said that Canada is paying, in two installments, to settle the forfeiture of deliveries for unneeded COVID-19 shots. That was the second bit of good news Novavax got last week. On Thursday, it said that had received updated Marketing Authorization (MA) from the European Union for its Nuvaxovid vaccine for those 12 and older and as a booster for adults. Initially, the European Commission had only given a conditional MA for Nuvaxovid.
The European Commission's decision on the vaccine was based on the safety and efficacy it showed in a phase 3 trial. The vaccine is approved in more than 40 countries.
Now what
Novavax only has one commercial product line -- its COVID-19 vaccines -- so it is likely looking at reduced revenue and net income unless a new variant causes a significant resurgence in the threat from the virus.
Its other potential path back to growth involves bringing another product to market. It does have several candidates in its pipeline, including a stand-alone influenza vaccine, a COVID-influenza combination vaccine, and a vaccine for malaria. Last quarter, Novavax had $81 million in revenue, well down from the $704 million it reported in the first quarter of 2022. It also said it lost $3.41 per share in Q1, in contrast to its earnings of $2.56 per share in the prior-year period. The company has paid down $541 million in debt, but the stock remains risky.
