The Food and Drug Administration said Friday its panel of experts will discuss Novavax's Covid vaccine in June, leading NVAX stock to surge.
Novavax hopes to launch its protein-based Covid vaccine in the U.S. for adults. The vaccine would offer an alternative to messenger RNA shots from Pfizer and Moderna.
First, it has to pass muster with the FDA's Vaccines and Related Biological Products Advisory Committee. The FDA will hold that meeting June 7. Then, panelists will debate the merits and risks of the two-dose vaccine.
On the stock market today, NVAX stock rose 1.8% to 45.07, settling down from a double-digit gain early in the regular session.
NVAX Stock: An Opportunity In Boosters?
Earlier this month, Novavax's vaccine gained authorization as a primary series and a booster shot in Japan. It sells in Japan and other countries under the brand name Nuvaxovid.
Its use as a primary series in the U.S. could be somewhat limited, however. To date, more than 66% of the whole population is fully vaccinated. The lion's share of Americans have received the Covid shots from Pfizer with partner BioNTech.
But the market for booster shots is much bigger. Roughly half of Americans are eligible for a booster shot, but haven't received one. That comes as new variants reduce the impact of both vaccines and treatments targeted to the original coronavirus strain. The FDA has allowed people to mix and match Covid shots as boosters.
NVAX stock remains under pressure, however. Despite the jump Friday, shares are well below their 50-day moving average, according to MarketSmith.com. Further, Novavax stock has a poor Relative Strength Rating of 3 out of 99. This puts shares in the lowest 3% of all stocks in terms of 12-month performance, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
