Why Novavax Shares Are Sinking Today
Jan. 22, 2020
Yesterday's euphoria that a virus scare could boost the biotech's fortunes has given way to a more realistic assessment of what's going on.
Shares of Novavax ( NASDAQ:NVAX ) are sinking today, down 18.7% as of 11:47 a.m. EST. The drop came after the initial excitement faded about the biotech's prospects in the wake of the spread of a deadly coronavirus that has infected hundreds of people in China and at least one person in the U.S.
Novavax stock skyrocketed yesterday as news outlets across the world reported on the coronavirus that's causing concerns about a potential pandemic. The company focuses on developing vaccines for infectious diseases and has worked on promising vaccines for coronaviruses in the past.
But bidding the biotech stock up by more than 46% was definitely putting the cart before the horse. Novavax doesn't have any approved products yet. It would take years (at least) for the company to win regulatory approval for a vaccine that could potentially target the coronavirus that's making headlines.
Investing in biotech stocks like Novavax comes with big up-and-down swings, as we've seen over the last couple of days. However, it's better for investors to ignore the noise and instead focus on the company's long-term prospects.
For Novavax, those prospects hinge largely on the success of the biotech's nanoparticle-based influenza vaccine, NanoFlu. The company anticipates announcing preliminary results from a late-stage study of NanoFlu later in the first quarter. If those results are positive, the vaccine could be on track to become Novavax's first approved product.
See the number of years UHURU will go to jail if MIGUNA MIGUNA’s revolution succeeds – The General has no mercy for despotsKenyan Journalists Married As Second Wives11 Sexy Ways To Make Him Go Down On You Without A PushHustler: Photo Of Mwai Kibaki Pushing Wheelbarrow Emerges, Kenyans React8 S3xy Reasons Why Women M0an In Bed