NVAX - Novavax: Bird Flu And COVID-19 Headlines Trigger Rally

2024-06-17 09:06:25 ET

Summary

• Novavax has seen a surge in stock price due to recent COVID-19 and bird flu vaccine developments, reaching over $27 per share.
• The company is making headlines with updates on their COVID-19 vaccine, bird flu vaccine, and potential FDA approval, with upcoming catalysts expected.
• Investors need to consider competition risks, but potential for Novavax to generate revenue and validate their vaccine technology with upcoming clinical trials.

It has been just over a month since my last Novavax ( NVAX ) article , where I highlighted the company's recent partnership deal with Sanofi ( SNY ) and updated my NVAX strategy. At that time, the company had mentioned that they were moving forward with their COVID-19 vaccine programs, as well as doing some pre-clinical work for a H5N1 bird flu vaccine. However, I underappreciated the timeliness of those updates because it was only days later that the FDA announced their suggested strain for the fall COVID-19 vaccine season. In addition, we have seen an increase in the number of reports from healthcare organizations about a potential public health crisis as humans are starting to be infected with the bird flu. As a result, the ticker went from roughly $8.60 per share to over $27 per share. Since then, NVAX has receded to around $14 per share, but it still has plenty of bullish signals and seasonality to potentially support a sustained rally. The ticker may be in reversal mode, forcing me to rework my NVAX strategy to adjust for multiple potential upcoming catalysts....

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