Biotech & Health

Here’s Why Gaithersburg’s Novavax Added Another $1 Billion To Its Skyrocketing Market Value

MBS Staff

Gaithersburg-based Novavax (NASDQ: NVAX) continues its winning streak on the heels of creating an effective vaccine against COVID-19, and the biotech is definitely taking advantage of it.

Earlier this month Novavax got a big bump in its stock price, propelling the company from only $100 million in market value last November to a settling point of more than $2.2 billion.

This was due to receiving a record amount of funding from the Coalition for Epidemic Preparedness Innovations for its COVID-19 vaccine candidate NVX-CoV2373, the amount was $384 million. More good news has come to the biotech which added another $1 billion to its market value, reaching as high as $3.3 billion on May 18.

The climb in price didn’t come without reason. Novavax released a prospectus supplement to raise more cash through the issuance of shares which it expects could garner up to $250 million. It’s a smart move for the company given that it’s sitting sky-high right now.

To get that amount would depend on the company able to sell 5,730,002 shares of common stock at their May 15 closing price of $43.63. But the investment bank (and also sales agent) B. Riley FBR raised its price target for Novavax to $53 a share from $43 as well as reiterated a ‘Buy’ rating; the company has already surpassed that target share price.

Some reports see the biotech as one of only two companies in the lead in finding a viable COVID-19 vaccine. Montgomery County has several companies and organizations working on fighting the COVID-19 pandemic in some way, shape or form. Including the National Institutes of Health and biotechs such as Emergent BioSolutions.