Novavax (NVAX) investors have had to be patient, as delays have seen its Covid-19 vaccine lag competitors’ offerings. However, recently the vaccine has been showing evidence it could still play a prominent role in the ongoing global fight against the coronavirus.
On Wednesday, the company announced two positive developments. First off, the biotech announced that NVX-CoV2373 has been granted emergency use authorization (EUA) in the Philippines, where it will go to market under the brand name COVOVAX.
The Philippines is one of the world’s most populace countries, with over 110 million people, however, only 22% are considered fully vaccinated, although the country’s rigid social distancing measures have resulted in the lowest number of cases seen over the past 11 months. Nevertheless, the country was an early NVX-CoV2373 adopter and has already secured a supply of 30 million doses. Additionally, as Novavax’ vaccine can be kept in a standard fridge temperature for long periods it could be highly beneficial in the country.
Separately, the company said the European Medicines Agency (EMA) has initiated its evaluation of NVAX's application for conditional marketing authorization. The vaccine is under an accelerated timeline review, and could potentially gain approval “within weeks,” where it will receive the brand name Nuvaxovid. Recall, the company has an agreement with the E.U. to supply it with up to 200 million doses of the vaccine. Unlike the Philippines, the region has recently seen a big increase in cases.
The latter piece of news is especially encouraging, notes longtime NVAX proponent B. Riley’s Mayank Mamtani. “We believe the EU accelerated review potentially having a favorable readthrough to regulatory filings with key Western economies, notably U.K., EU, Canada and U.S,” the analyst said.
Approval in the UK, Canada, Australia and New Zealand could act as further catalysts and so could an EUA filing with the FDA before the year’s end. Mamtani “continues to believe the EUA path remains open with the U.S.”
Everything that NVAX has going for it convinced Mamtani to reiterate his Buy rating. Along with the call, he attached a $305 price target, suggesting ~47% upside potential. (To watch Mamtani’s track record, click here)
Two other analysts have recently chimed in with NVAX reviews, with one saying Hold and the other recommending to Buy, leading to a Moderate Buy consensus rating. According to the $249.67 average price target, shares will appreciate 20% over the coming months. (See NVAX stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.