What happened
News of a fresh COVID-19 surge sent numerous stockholders into the shares of vaccine maker Novavax (NVAX 3.54%) on the first trading day of the week. As a result, Novavax's shares popped more than 13% higher in anticipation that the company's wares would be needed in a new fight against the disease. By contrast, the S&P 500 index only crept up 0.2% on the day.
So what
According to data from the U.S. government's Centers for Disease Control and Prevention (CDC), on the basis of several tracking metrics, COVID is on the rise nationally. In its most recently tracked weekly period (July 16 to 22), the CDC's data indicate a 12% rise in hospital admissions for the disease. Deaths were also up, although not by much, rising by a shade under 1%.
Novavax developed and sells Nuvaxovid, one of three vaccines currently greenlighted by the Food and Drug Administration (FDA) to help prevent COVID. It is currently under the regulator's Emergency Use Authorization (EUA) designation.
As Nuvaxovid was the last of the coronavirus vaccines to be authorized by the FDA, it was always somewhat of a laggard. This occurred in July 2022, well after other jabs developed by Pfizer and BioNTech, Moderna, and Johnson & Johnson unit Janssen (which has since lost its EUA) were given the nod.
Now what
While a renewed COVID offensive is a worrying and exhausting possibility, it is not a certainty. Several experts do not expect a sustained renewal of the disease, and some believe that most cases won't end up being severe. In case they're wrong, though, vaccine makers like Novavax will again be at the forefront of the war against the affliction.
