What Transpired
On Monday, Novavax's share value soared by 13%.
Reports of a rising COVID-19 wave sparked interest in vaccine manufacturer Novavax's shares (NVAX 1.39%). Consequently, Novavax's stock soared by over 13% as investors presumed that the company's offerings would be essential in combating the disease once more. However, the S&P 500 index only experienced a minimal increase of 0.2% during the same period.
What's Going On
Based on data obtained from the U.S. Centers for Disease Control and Prevention (CDC), the country is currently experiencing a surge in COVID-19 cases. According to the CDC's latest data, which covers the period from July 16 to 22, hospital admissions have increased by 12%. In addition, while deaths have also risen, the increase has been relatively minor, climbing by approximately 1%.
Novavax is the creator and distributor of Nuvaxovid, one of three vaccines authorized by the Food and Drug Administration (FDA) to prevent COVID-19. The vaccine currently falls under the FDA's Emergency Use Authorization (EUA) classification.
Since Nuvaxovid was the final coronavirus vaccine to receive FDA approval—which occurred in July 2022—it has always played catch-up to vaccines developed by companies such as Pfizer and BioNTech, Moderna, and Johnson & Johnson's Janssen unit (which has since lost its EUA status).
What's Next
While the prospect of a renewed COVID-19 outbreak is disconcerting and exhausting, it is not guaranteed. Several experts predict that the disease may not sustain its renewal, while others believe that the majority of cases will not result in severe symptoms. If their predictions turn out to be incorrect, however, vaccine manufacturers like Novavax will again play a crucial role in the battle against the disease.
In light of the rising COVID-19 cases, investors are showing interest in financing and investing in companies like Novavax, which produces Nuvaxovid, as they see its offerings as crucial in combating the disease. With the surge in COVID-19 cases, the demand for vaccines may increase, leading to potential financial gains for companies like Novavax in the finance and investing sectors.
