As the pressure mounts across the globe for more doses of potentially lifesaving Covid-19 vaccines, Novavax (NASDAQ:NVAX) is heavily involved in the international distribution effort. Yet, some folks are skeptical of buying NVAX stock because of the company’s well-known competitors.
Those are well-known drugmakers, but this doesn’t mean that they’re going to control the market completely. As we take note of the latest developments with Novavax, it should become clear that there’s room for several Covid-19 vaccine makers to succeed.
Not only that, but in multiple regions of the world Novavax could become a leader in this regard. That, without a doubt, should be an exciting prospect for long-term holders of NVAX stock.
A Closer Look at NVAX Stock
In terms of the price action of NVAX stock, I’ll go ahead and start off with the bad news. Namely, Novavax’s trailing 12-month earnings per share is -$5.66.
Hopefully, we’ll see that number turn positive at some point in the near future. Another possible issue is that NVAX stock has a five-year monthly beta of two, which means that the stock tends to move twice as fast as the overall stock market.
In other words, you’ll need to brace for volatility if you’re planning to hold your shares of NVAX stock. That might be a deal-breaker for some of the more risk-averse investors out there.
However, at least we can say with confidence that the long-term trend in NVAX stock is bullish. Amazingly, the share price was below $8 a year ago. As of Jan. 22, it was all the way up to $126.98.
The NVAX stock price went sideways in December and much of January. So, it’s possible that the bulls are taking a breather and setting up for another leg higher in the coming weeks.
A Wrinkle in the Timeline
Novavax has a number of drugs in its pipeline, but let’s be honest. When it comes to this company, today’s investors mostly want to know about Novavax’s Covid-19 vaccine candidate, known as NVX-CoV2373.
Again, I’ll start off with the bad news first. In November, Novavax’s stakeholders may have been disappointed to learn that the company’s “late-stage” U.S. Covid-19 vaccine trial would be delayed.
But really, the news wasn’t as bad as it might sound. Cantor Fitzgerald analyst Charles Duncan observed that this U.S. trial delay wasn’t really meaningful. Duncan further noted that the delay could provide more information into Novavax’s “second-generation” vaccine.
In the final analysis, pharmaceutical-industry investors should understand that it’s not unusual for drugmakers to push back their timelines. And in Novavax’s case, the company appears to be making progress in other geographies besides the U.S.
There’s no question that Novavax is working hard to get its doses of NVX-CoV2373 to as many people as possible.
If you’re ready to do some digging, you can find ample evidence that Novavax is making strides in the multi-national vaccination effort:
- Novavax disclosed an Advance Purchase Agreement with the government of New Zealand for 10.7 million doses of NVX-CoV2373.
- Next, the company inked an Advance Purchase Agreement with the Commonwealth of Australia to supply 51 million doses.
- Moreover, the Canadian government has committed to purchase 52 million doses of NVX-CoV2373, with an option to buy an additional 24 million doses.
- South Korea may order Novavax’s Covid-19 vaccine for 20 million people; that would be in addition to the millions of doses that South Korea has already secured.
The Bottom Line on NVAX Stock
Is Novavax the most obvious and famous competitor in the Covid-19 vaccine race? Probably not, but it’s nonetheless a vaccine maker worth considering as an investor.
And with the company working relentlessly to bring its Covid-19 vaccine to the people in multiple regions of the world, it’s a good time to consider a small position in NVAX stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.