PFE

Pfizer, Inc.

52.43
USD
2.93%
52.43
USD
2.93%
38.93 61.71
52 weeks
52 weeks

Mkt Cap 292.46B

Shares Out 5.58B

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Why Novavax Is Up More Than 18% Today

What happened Shares of drugmaker Novavax (NASDAQ: NVAX) are up to the tune of 18.9% as of 2:11 p.m. ET Friday, according to data from S&P Global Market Intelligence, thanks to a confluence of events that work in the company's favor. So what Chalk it up to a resurgence of COVID-19 infections that's too serious to be ignored. No, Novavax wasn't one of the early developers of a COVID-19 vaccine. But the company has continued to work on one all the same. Notably, its solution isn't rooted in messenger RNA (mRNA) that has caused some people to balk at the jab. Novavax's NVX-CoV2373, rather, is a more conventional protein-based option that should prove more palatable to individuals worried an RNA-based injection might cause unforeseen and irreparable physical harm. Although the drug has been approved in some overseas markets, Novavax announced on Thursday that the Food and Drug Administration's (FDA's) Vaccines and Related Biological Products Advisory Committee will consider NVX-CoV2373 as another inoculation option for the all-important U.S. market. This prospective alternative couldn't have arrived at a better time. COVID-19 is still here and continuing to spread globally. The Centers for Disease Control and Prevention (CDC) reports the U.S. is averaging nearly 110,000 new cases per day at this time, up from less than 30,000 per day as of early April. Due to this renewed and rapid spread, on Thursday President Biden unveiled a new federally funded initiative to support the fight against the pandemic. Although Pfizer's Paxlovid was the only antiviral mentioned by name within the White House website's official announcement, Novavax's NVX-CoV2373 could become part of the initiative's preferred drugs if the FDA green lights it this coming month. Now what Generally speaking, speculating on drug approvals can do more harm than good. The practice not only requires deep knowledge of pharmaceutical science but an understanding of investor psychology. The market isn't always rational when it comes to pharmaceutical development. This is a scenario, however, where the upside is clear and uncomplicated. It's conceivable that COVID-19 will never really go away, necessitating ongoing vaccinations. Continued mutations of the original virus only enhance the possibility that previously developed vaccines will become increasingly ineffective. With or without a looming end to the pandemic, the number of RNA-based coronavirus inoculations in the United States is plateauing at just under 80% of the population, according to CDC data. Novavax's new type of vaccine, which is highly effective against the original coronavirus and particular variants, translates into potential revenue growth. The stock's 80% rout since December only bolsters the speculatively bullish case for Novavax shares now. 10 stocks we like better than Novavax When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Novavax wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of April 27, 2022 James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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