Why Novavax Shares Surged 28% Today

Novavax, Inc NVAX shares rose over 28% in regular trading and the after-hours session on Thursday.

What Happened: The Maryland-based vaccine maker said Thursday that its COVID-19 vaccine candidate NVX-COV2373 showed 89.3% efficacy in Phase 3 trials conducted in the United Kingdom.

See also: How to Buy Novavax Stock

In South Africa, the Phase 2b trial of the vaccine showed a 60% efficacy among people who are HIV negative. 

The U.K. data is more or less similar to the efficacy of the vaccines made by Pfizer Inc PFE and Moderna Inc MRNA, John Moore, a professor of microbiology and immunology at Weill Cornell Medical College said, reported Reuters.

Why It Matters: Novavax claims its vaccine is the first to demonstrate clinical efficacy against the U.K and South African COVID-19 variants.

This month the drugmaker appointed a new regulatory executive as it comes close to filing for emergency authorization of its vaccine in the United States.

See Also: 2021 Could Be Novavax's Year

Novavax has a deal with India’s Serum Institute of India Private Limited that gives the latter non-exclusive rights to the vaccine in all countries except for upper-middle or high-income countries.

The company’s vaccine is expected to be manufactured in eight plants in seven countries at the rate of two billion doses per year, including at the Serum Institute, according to Reuters.

Price Action: Novavax shares surged 26.48% in the after-hours session to $169.50, after closing 2.16% higher at $134.01 in the regular session.