Novavax Stock: Do Not Sell Your Shares Now!
A competitor’s anti-viral medication should not be enough to convince you to sell your NVAX shares.
Novavax (NASDAQ:NVAX) was one of the most hopeful drugs companies as the Covid-19 epidemic significantly expanded last year. Those who held on to Novavax Stock were well awarded – however the stocks have lately been unstable.
A competing biotech firm just made a discovery that might be good news for the entire globe. But on the other side, it may pose a problem for Novavax and its stockholders.
Also on the news, some investors may be considering selling their Novavax stock. However, panic selling the stock is not really the greatest idea right now.
How was the (NVAX) Novavax Stock Price Going?
Whereas many companies fell into a bearish trend in March and April of 2020, (NVAX) Novavax stock has risen to new highs.
Surprisingly, the stock has risen to $170 in August of the same year, despite beginning the year at $4.
Some other vertical share-price surge occurred in February 2021. It’s conceivable that Reddit investors were engaged in the rally this time. Perhaps it was prompted by market fear about Covid-19 variants. In just about any case, (NVAX) Novavax stock rose to $331.68 in early February.
The rally couldn’t last since the price rise was so high. As a result, Novavax’s stockholders were driven to a roller coaster ride over the next seven months. The last few weeks have been extremely difficult, with (NVAX) Novavax stock falling from $270 to $167.
But please don’t be scared, Novavax did nothing illegal. There was no significant controversy or failure on Novavax’s side, but a more well-known pharmaceutical company appears to have acquired the upper hand.
Merck stock (NYSE:MRK) shook up the medical sector with a significant announcement in early October.
According to reports, Merck’s oral Covid-19 anti-viral tablet, molnupiravir, minimizes the chances of hospitalization or mortality among Covid-19 patients by about 50%. Phase 3 research is examining the efficacy of treating “at risk, non-hospitalized senior patients with mild-to-moderate COVID-19” with molnupiravir.
Furthermore, Merck recently stated that it had made an application to the FDA for Emergency Use Authorization for molnupiravir.
Clearly, the initial reports of the molnupiravir study are quite positive. The availability of a possibly life-saving oral Covid-19 therapy is a major support.
Merck has already committed to give the United States government with 1.7 million doses of molnupiravir.
Some shareholders may be concerned that Novavax’s Covid-19 vaccine candidate, NVX-CoV2373, may be left in the dust as a result of this incident.
A Different Pipeline
Jefferies expert Michael Yee, on the other hand, is unconcerned. Consequently, Yee does not expect Merck’s molnupiravir announcement will have a significant impact on vaccination sales. According to the expert, “vaccines, prevent getting sick in the to begin with.” That is a good point. Nevertheless, just as important as Yee’s comment is the reality that Novavax isn’t the only one pony in the pharmaceutical industry.
Another standout in Novavax’s pipeline is the influenza vaccination, NanoFlu. The data of Phase 3 clinical study of NanoFlu with a Matrix-M augment were recently reported in The Lancet Infectious Diseases.
As per Novavax, the research revealed that NanoFlu has been well and “generated considerably increased humoral and cellular immune responses against the comparison vaccination.”
ResVax for influenza viruses is another strong component of Novavax’s pipeline, as antiviral drugs for Ebola.
It is vital to recognize Merck’s threats to Novavax, but Novavax shareholders do not have to react by selling their stocks.
As Yee highlighted, Merck’s development will not have a significant impact on the vaccination industry. Moreover, Novavax is more than just its Covid-19 vaccine candidate. The firm has the breadth and diversity to outperform its rivals and compete in the pharmaceutical industry in the long run.