Shares of Novavax, Inc. (NASDAQ: NVAX) surged 28.15% on Monday following two major announcements: the revised agreement with the Government of Canada and the full approval and marketing authorization from the European Commission for its COVID-19 vaccine, Nuvaxovid.
Novavax’s Revised Agreement with the Government of Canada: Novavax recently disclosed a revised agreement with the Government of Canada regarding the supply of its COVID-19 vaccine. This new agreement involves the Canadian government paying $349.6 million to Novavax as compensation for certain forfeited doses of its COVID vaccine. The amendment to the agreement was finalized on June 30, 2023. The payment will be made in two equal installments, with the first installment being paid upon execution of the amendment. The second installment is contingent upon Novavax delivering the vaccines in the latter half of 2023.
It’s important to note that the overall value of the original advanced purchase agreement remains unchanged. Novavax and the Canadian government are also collaborating to expand their partnership, with the aim of providing health, economic, and pandemic preparedness benefits to Canada.
European Commission Grants Full Approval to Novavax’s COVID-19 Vaccine, Nuvaxovid: In another significant development, Novavax received full approval and marketing authorization from the European Commission for its COVID-19 vaccine, Nuvaxovid. This approval enables Novavax to market its vaccine alongside other approved vaccines from Pfizer Inc. (NYSE: PFE), Moderna, Inc. (NASDAQ: MRNA), Janssen, and AstraZeneca PLC (NASDAQ: AZN) in the European market.
Nuvaxovid is a protein-based vaccine that has been authorized for use as a primary series for individuals aged 12 and older, as well as a booster for those aged 18 and older.
Positive Impact on Novavax’s Stock
The positive news from Novavax regarding the revised agreement with the Government of Canada and the full approval of Nuvaxovid by the European Commission sparked a surge in the company’s stock price. On Monday, the trading volume for Novavax reached over 24.48 million shares, significantly surpassing the stock’s 100-day average of 5.87 million shares. This surge in trading volume indicates a strong level of investor interest and demonstrates the market’s positive response to Novavax’s recent achievements.
Furthermore, data from Fintel reveals that NVAX has attracted considerable short interest, with approximately 37.86% of available shares currently being sold short. This suggests a high level of speculation among some investors, potentially indicating a belief that the stock’s price will decline. The dynamics between short sellers and optimistic investors will be an area to closely watch as Novavax progresses with its vaccine initiatives.