Novavax Shares Jump After Head Of EU Drug Regulator Hints At Imminent Authorization For COVID-19 Vaccine

Novavax, Inc. NVAX shares are advancing Tuesday amid signals that the company's long-delayed COVID-19 vaccine could soon receive authorization in Europe.

What Happened: As Europe strives to fully vaccinate its population amid the variant threat, Novavax's COVID-19 vaccine, based on traditional vaccine technology, could soon receive authorization in Europe, Marco Cavaleri, head of the Vaccines Task Force of the European Medicines Agency reportedly told the press.

While reaffirming the effectiveness of the vaccines that are currently authorized for use, the EMA official reportedly said Novavax may have more takers from among anti-vaxxers, who are skeptical about mRNA vaccines.

Cavaleri said the agency will likely give the nod to Novavax' vaccine by next week.

"The data speaks of an efficacy of around 90% and are in any case solid. I believe that the vaccine can get approval by mid-December," Cavaleri reportedly said.

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The official reasoned that in the end, the safety and quality standards of production are in alignment with those required by the EMA.

Why It's Important: Novavax and its partner Serum Institute of India received the first authorization for the latter's COVID-19 vaccine in Indonesia. If EMA goes ahead and gives its nod, the endorsement by a major regulator could lead to more coming along the way.

Novavax shares have come back notably from their highs due to the protracted delay the company is facing to take its vaccine past the finish line.

Novavax shares were rising 19.7% to $169.80 at press time.