Novavax On Track To Snap Losing Streak On Massive Vaccine Supply Deal

Novavax, Inc. NVAX shares raced to an all-time $331.68 on Feb. 9 before beginning to lose steam. Shares have declined for seven consecutive sessions since then, but a positive release from the company is lifting the stock.

What Happened: Novavax announced late Thursday a deal with Gavi, an international vaccine alliance, to supply 1.1 billion cumulative doses of NVX-CpV2373, its recombinant protein-based vaccine candidate against SARS-CoV-2.

The supply contract is for the COVAX Facility.

The COVAX alliance is established to ensure fair and equitable access to COVID-19 tools, including vaccines, for every country in the world. The alliance is spearheaded by the CEPI, Gavi and WHO. The other participants in the alliance include vaccine manufacturers in developed and developing countries, UNICEF, the World Bank, civil society organizations and others.

Novavax said it will manufacture and distribute the contracted vaccine doses globally, in partnership with the Serum Institute of India, or SII.
Gavi will lead the design and implementation of the COVAX Facility and work with Novavax in finalizing an advance purchase agreement.

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What's Next: Novavax' vaccine candidate is currently in ongoing Phase 3 trials in the U.S., Mexico and U.K., a Phase 2 trial in South Africa and a Phase 1/2 continuation study in the U.S. and Australia.

Top-line results from the Phase 3 study in the U.K. demonstrated a point estimate of vaccine efficacy of 89.3%. The vaccine candidate was among the first to demonstrate efficacy against both the original and rapidly emerging variants in the U.K. and South Africa.

NVX-CoV2373 also enjoy logistical advantage, as it's amenable for shipping in a ready-to-use liquid formulation and is stable at 2-8 degrees centigrade.

Novavax has already clinched supply deals with the governments of South Korea, Canada, Switzerland, Australia, New Zealand, the U.K., Japan and the U.S. It has also initiated rolling submission of regulatory applications with agencies in the U.K., Europe, U.S. and Canada.

In premarket trading Friday, Novavax shares were advancing 10.39% to $ 292.85.