what happened
Shares of Novavax (NASDAQ: NVAX) rose 19.1% on Monday at 12:08 EST. This huge gain came after the stock soared on Friday after announcing positive results in the late stage for the COVID-19 vaccine candidate NVX-CoV2373.
Today’s jump seems to be due in part to last week’s continued momentum. Mayank Mamtani, an analyst at B. Riley Securities, also raised its price target on Novavax from $ 223 to $ 334, reflecting a 51% premium to the closing price of the stock on Friday.
Approximately
It is impossible to determine how much of the profit for Novavax today stems from Mamtani’s positive view on the biotechnology share. However, the underlying reasons for his optimism seem to be on point.
Image Source: Getty Images.
Mamtani wrote to investors that Novavax should have significant competitive differentiation in the COVID-19 vaccine market. The high efficiency for NVX-CoV2373 and its logistical advantages (which do not include ultra-cold storage requirements) should help make it a major commercial winner, assuming the vaccine secures regulatory authorizations.
The analyst also pointed out that Novavax has another vaccine candidate that has a lot of potential. The company reported positive results for the experimental flu vaccine NanoFlu last year. Mamtani expects biotechnology to gain significant market share in the fast-growing COVID-19 and influenza vaccine markets.
Now what
There are now two important milestones to keep an eye on with Novavax. First, the company needs to be in a strong position to get authorization for NVX-CoV2373 in the UK soon. Second, Novavax is doing another late stage of the vaccine in the US and Mexico. Results of the study should be available within the next few months.