When a pharmaceutical or biotech company manages to get a highly positive update with regards to one of its products in development, then the stock price generally moves in the right direction. That is what has happened with NVAX stock over the course of the past week after one of Novavax’s (NASDAQ:NVAX) products got the coveted fast track designation from the United States Food and Drug Administration.
The product in question is NanoFlu, the company’s flu vaccine product. It is a significant development for Novavax, and the update fired up the stock as well.
NVAX Stock Gains Momentum
Investors piled onto NVAX stock over the course of the past week, and Novavax rallied by as much as 44% during the period. It goes without saying that this is a significant development for the company, and it is likely that the stock is going to be in focus this week among market participants.
A fast designation implies that the FDA believes that NanoFlu is a promising product and, so, wants to bring it into the market quickly. Novavax is also going to have interactions with the agency far more frequently as it tries to get the necessary approvals.
NVAX stock was up over 20% on Friday.
The fresh development has come as a major boost for NVAX stock, which was in the middle of a meltdown around a year ago. At the time, the company’s respiratory syncytial virus (RSV) vaccine could not clear a crucial test, and it resulted in a massive selloff in the stock. In a matter of around one month, the stock lost as much as 69% as investors lost faith.
However, the optimism about the company is now back with a bang in light of the latest developments. Experts believe that NanoFlu could well be the product that helps Novavax return to its previous levels. Investors could do well to follow NVAX stock progress over the coming days.
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