Biotech & Health

Gaithersburg’s Novavax (NVAX) Market Cap Explodes To Multibillion-Dollar Valuation; Up Over 83 percent

MBS Staff

Novavax (NASDAQ: NVAX) President and CEO Stanley C. Erck should surely be feeling a sense of accomplishment at the sight of the company’s stock price, at very least he’s taking a deep sigh of relief for now. The Gaithersburg-based biotech has had a complicated history of great potential in proprietary technology coupled with failed drug trials that's tanked the stock to new lows but management may be close to putting that all behind them.

Literally overnight the company has grown leaps and bounds to multibillion-dollar valuation, the stock price jumped more than 83 percent to a current trade price of $44 Tuesday. It’s a continued trend for the company which has been riding a wave of good press because of its involvement in fighting the coronavirus. Novavax has in the works what it calls a promising COVID-19 vaccine named NVX-CoV2373. The company went from being worth approximately $100 million in November last year to $2.5 Billion today.

Back in March the company received $4 million in funding from the Coalition for Epidemic Preparedness Innovations (CEPI) to advance the development of NVX-CoV2373, yesterday CEPI granted an additional $384 million to Novavax; an amount the company will use to reach approval for a SARS-CoV-2 vaccine in face of intense competition. It will employ its proprietary Matrix-M™ adjuvant that’s supposed to enhance immune responses in patients via stimulating high levels of neutralizing antibodies.

The funding from CEPI speaks volumes of Novavax as the organization has given smaller amounts of funding to other firms. Now that Novavax has addressed funding concerns, it can continue at fast pace with clinical trials and scale up production to 100 million doses through its Gaithersburg-based partner Emergent BioSolutions (NYSE: EBS).

Not only is the COVID-19 vaccine in the works but the company also shared successful Phase 3 results for another drug called NanoFlu that could possibly be the company's first approval from the FDA.