Why the Novavax Vaccine Update Is Huge

By Chris Lange Published May 26, 10:06AM EDT

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Why the Novavax Vaccine Update Is Huge — © governortomwolf / Flickr

Novavax Inc. (NASDAQ: NVAX) shares jumped to start off the week after an update from its COVID-19 vaccine trial. This news adds to investor optimism and is helping to lift the broad markets in general. The S&P 500 and Dow Jones industrial average were each up over 2% Tuesday morning.

As for the update, Novavax announced the enrollment of the first participants in a Phase 1/2 clinical trial of its coronavirus vaccine candidate, NVX‑CoV2373.

The preliminary immunogenicity and safety results from the Phase 1 portion of the trial are expected in July 2020.

NVX‑CoV2373 includes Novavax’s proprietary Matrix‑M adjuvant to enhance immune responses and stimulate high levels of neutralizing antibodies.

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The Phase 1/2 clinical trial is being conducted in two parts:

The Phase 1 portion is a randomized, observer-blinded, placebo-controlled trial designed to evaluate the immunogenicity and safety of NVX‑CoV2373, both adjuvanted with Matrix‑M and unadjuvanted. The trial is enrolling approximately 130 healthy participants 18 to 59 years of age at two sites in Australia. The protocol’s two-dose trial regimen assesses two dose sizes (5 and 25 micrograms) with Matrix‑M and without.

The Phase 2 portion is expected to be conducted in multiple countries, including the United States, and would assess immunity, safety and COVID‑19 disease reduction in a broader age range. This Phase 1/2 approach allows for rapid advancement of NVX‑CoV2373 during the pandemic. The trial is being supported by the recently announced funding arrangement with the Coalition for Epidemic Preparedness Innovations (CEPI).

The markets saw a similar reaction when Moderna Inc. (NASDAQ: MRNA | MRNA Price Prediction) announced that it was progressing to Phase 2 about a week ago. This race for a vaccine has been compared to the Kentucky Derby, with investors betting on different companies to cross the finish line first.

Novavax stock traded up over 17% at $54.24 Tuesday morning, in a 52-week range of $3.54 to $61.50. The consensus price target is $23.17.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.