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Hype Asset of the Day | March, 14th, 2022



Novavax, Inc. (NASDAQ: NVAX)

The Gaithersburg, Maryland-based biotechnology company Novavax, Inc. produces vaccines to fend off dangerous infectious diseases. The company refocused its efforts in 2020 to concentrate on the creation and endorsement of its NVX-CoV2373 vaccine for COVID-19. Having recently released its earnings report for Q4, the company has caught the sight of investors that are now looking at its potential. The company has seen an increase in mentions by 121% over the last day, prompting investors to see what makes it gain such hype. Currently, shares of Novavax trade at $6.81.


Positive Hype

There are multiple reasons for Novavax to have generated such positive hype over the last few days, and they are mostly because the company has great potential.


  • Novavax’s vaccine, Nuvaxovid, has earned authorization or approval in many countries. Novavax soared more than 2,700% in 2020 as investors bet on its investigational coronavirus vaccine. Being its first product, the company seems to be on track to doing much better.


  • For its part, Novavax plans on having a vaccine on the market that follows the guidance set forth by the FDA. The company estimates a coronavirus vaccine market worth $18 billion in 2025.


  • The U.S. government has agreed to buy 1.5 million more doses of Novavax Inc COVID-19 vaccine, the company said on Monday, adding that the modified agreement includes funds for the development of an updated vaccine by fall this year.


  • Further, the company has other exciting candidates. It has a potential malaria vaccine in phase 2 studies. Its most promising program is the vaccine that targets COVID-19 and the flu and could be extremely successful if it earns approval.


  • Novavax's big break could come a bit farther down the road. The company is studying a combined coronavirus/flu vaccine in phase 2 trials. If eventually approved, this sort of product could stand out and become a market leader.


Negative Hype

Despite having such great potential, there are certain reasons to be wary of investing in Novavax and here are two of them.


  • Its market capitalization currently stands at about $865 million after the shares dropped by 87% in the past year.


  • Novavax has lagged behind its competitors in the coronavirus vaccine market. However, this is more because of when their vaccine came out and could have been just that.


Conclusion

Given its current market cap and low share price, Novavax may be worth investing in, considering its decent prospects in the coronavirus vaccine space and the other candidates it is working on. However, this is still a stock that is considered reserved for those with a higher risk appetite.


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