Biotech company Novavax (NASDAQ:NVAX) is enjoying a share rise of 59.40% as of 4:00 PM EST today on the heels of announcing encouraging results in an immunization study. This brings their share value up from $1.315 USD at 10 AM CST this morning to $2.12 this afternoon.
Novavax, which specializes in disease prevention and nanoparticle vaccine technology, made their announcement at the 2018 JP Morgan (NYSE:JPM) healthcare conference in San Francisco today. The trial tested a vaccine for RSV (Respiratory Syncytial Virus) on pregnant women to see if it was effective in protecting their infants. External statistic analysis by the Data Safety Monitoring Board revealed positive results, meaning that the required 40% efficacy threshold (a 40% success rate) was met. This has greatly intrigued investors, which has resulted in the skyrocketing stock we are seeing today. In 2015 alone, says Novavax, the total flu vaccine market was worth $3.1 billion based on 7 major markets.
RSV is a common respiratory virus which can be serious in infants or the elderly. In fact, it is the leading cause of pneumonia in children under the age of 1 in the United States. By immunizing expectant mothers with their in-trial RSV F vaccine, Novavax aims to prevent the virus before it even occurs.
Novavax last garnered unfortunate attention in December, failing to announce any news on a trial of its NanoFlu vaccine which investors where anticipating. This caused stocks to dive from $1.49 USD to $1.09 USD on the 19th, a fall of -26.8%. Despite this, Novavax has more than regained lost ground, and stockholders will be relieved today as values rise to the highest levels since September 2016.
Looking ahead, Novavax will continue the phase 3 trial of RSV F until 3,000 infants involved in the trial are born, a number which will allow the FDA to approve the vaccine based on its observed effectiveness at that time. It will now drive as much as it can to bring the interim analysis to fruition, which is currently expected to arrive in 4Q 2018 or 1Q 2019. Until then, keep an eye on their stocks to see how long this rise will go on for, and whether any new announcements will be made in the coming months.
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