The stock of Novavax, Inc. (NVAX) gained value in the pre-market after the company announced that they will start preparing a vaccine that would be specifically designed for Omicron coronavirus. After the news hit the market, the stock gained more than 6.81% to reach $173.00. At the end of the previous trading session, the stock closed at $161.97.
Novavax is developing a vaccine for Omicron Variant:
On 2nd December 2021, Novavax, Inc. (NVAX) announced in a press release that they will be evaluating its vaccine against the Omicron variant in the first place as they did for the other variants of the novel corona virus-like Alpha, Beta, and Delta variant. The company also announced that other than relying on the evaluation data of the impact of the current vaccine on the Omicron variant, they have also started the development of a vaccine that is specific to the Omicron variant.
Impact of the vaccine for a new variant on NVAX stock:
Although Novavax, Inc. (NVAX) is already one year late in the deployment of their current vaccine due to the production issues, they have to yet deploy their original coronavirus vaccine in the developed markets and send the data to FDA which is likely to be done at the end of 2021. The investors should be positive about the company’s performance and its stock value because as the new variant of the virus is on rising and have already reached 24 countries, there is a demand for the booster shot and its already developed vaccine could be a potential candidate in becoming a choice as a booster vaccine. That will increase its profitability and will be able to reach the already saturated markets.
Secondly, they have stated that in the upcoming weeks they will be ready to have a vaccine shot that will target the omicron virus because they have already started their development on updating the vaccine that is supposed to target the recent variant. But should not expect too much from the company in such a short span of time because they have already struggled in manufacturing the vaccine due to production problems.
Conclusion:
The upcoming weeks will be crucial for the stock of Novavax. If they succeed in getting orders for their current vaccines as a booster shot it will increase the revenue for the company. But the company is also stressing developing a vaccine for the Omicron variant.
