Novavax pops on $1.6 billion funding for Covid-19 vaccine
The race to find a coronavirus vaccine continues to heat up with current leader Novavax Inc surging more than 30% in Tuesday's session with a higher open also set for Wednesday. News that Novavax Inc (NVAX) received $1.6 billion in funding from the US government has kept the company's stock price high on investors' watchlists.
The payout is the largest hand out from the US government's Operation Warp Speed programme whose goal is to deliver 300 million doses of a safe, effective vaccine for Covid-19 by January 2021.
Novavax Inc's share price is already up 2,527% in 2020, starting out the year as a penny stock around $1.80 per share and now trading around the $100 per share level. The extra $1.6 billion in funding will be spent on testing and production for a potential Covid-19 vaccine with a plan to have 100,000 approved doses for delivery in early 2021.
Other companies are also in the race towards a coronavirus vaccine with extra help from Operation Warp Speed:
- $456 million in funds for Johnson & Johnson (JNJ) which has Phase 1 clinical trials starting this summer.
- $483 million for Moderna's (MRNA) vaccine candidate which started Phase 1 trials in March.
- $450 million for Regeneron Pharmaceuticals (REGN) who is working on an anti-viral treatment.
- $1.2 billion for AstraZeneca's (AZN) vaccine candidate developed in conjunction with the University of Oxford. Phase 3 clinical trials are beginning this summer.
Below is the long-term, monthly price chart of Novavax Inc's share price, available via Admiral Markets on the MetaTrader 5 trading platform.
Source: Admiral Markets MetaTrader 5, #NVAX, Monthly - Data range: from 1 December 1995 to 8 July 2020. Please note: Past performance is not a reliable indicator of future results.
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