Novavax Stock Price Erupts 70% On A New Vaccine
- Novavax announced it has received fast track designation from the USFDA for its NanoFlu vaccine
- Coronavirus is spreading quickly in China, South Korea, and Japan, which gives more importance and spotlight to Novavax’s latest product
- Novavax stock price gained nearly 150% in around one week’s time
Shares of Novavax (NVAX), a clinical-stage vaccine company, skyrocketed yesterday on the news that the company’s new vaccine is in the late-stage clinical trials.
Fundamental analysis: Fast-track designation obtained
The biotech firm said that it has received fast track designation from the U.S. Food and Drug Administration (USDFDA) for its NanoFlu vaccine. The status is designed to help products obtain the final approval faster, if it fares well in the clinical trials.
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“[The designation] reflects the urgent unmet medical need for a more effective vaccine against influenza, particularly in the older adult population, which often experiences serious and sometimes life-threatening complications of the disease,” said Novavax President and CEO Stanley Erck in a statement.
The news came in a moment when biotech investors are focusing on China, where there are increased concerns about the spread of the coronavirus. It has been reported that around 200 people are infected, with at least six deaths documented thus far.
The NanoFlu vaccine is designed for adults age 65 or older. The company’s products are mostly focused on the development of vaccines for infectious diseases. In the meantime, the virus has spread to Japan and South Korea as well.
“Using Novavax’ recombinant nanoparticle vaccine technology, the company expects to develop a vaccine candidate from the genetic sequence of the Wuhan coronavirus,” the company said in a statement.
While biotech companies recorded a jump in stock price in general, Novavax is the leader as some of its products have already showed results when dealing with the coronavirus.
The biotech company is expected to provide the first result of stage-three testing of the NanoFlu at the end of Q1.
Technical analysis: Stock price skyrockets higher
Following the USFDA news, investors hurled to buy the Novavax stock, which caused it to erupt higher on high volume. In total, the NVAX stock price gained nearly 150% compared to the start of the previous week.
As seen in the chart, the price has a lot of upside room, given the stock performance in recent years. The bulls will target the horizontal resistance at $14.30 as the next profit-taking level while the zone between $21.50 and $26.50 is home to multiple layers of resistance, including the 100-WMA at $21.66.
On the downside, the old resistance at $8.50 will now offer support to bulls, should the price action rotate lower.
Shares of Novavax skyrocketed this week on the news that the company received a fast track designation from the USFDA for its NanoFlu vaccine. The interest for the stock is higher than usual due to increased concerns about the spread of the coronavirus in China.
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