In January last year, Novavax Inc. employees met at a local Maryland bar to discuss how they could save their careers. For decades, small biotechnology has tried unsuccessfully to develop an approved vaccine. The company had enough cash to survive just another six months or more and its shares were traded for less than $ 4, with a market value of $ 127 million.
Today, Novavax is moving towards the authorization of a Covid-19 vaccine. Scientists believe that if eliminated, it could be one of the most powerful weapons against the pandemic, offering important advantages over its competitors. Some initial data suggest that Novavax injection may be one of the first to contain the asymptomatic spread of the coronavirus and also provide potentially more lasting protection.
If the vaccine is authorized, Novavax will still have the challenge of manufacturing and distributing it in large quantities. The company sold some manufacturing assets in 2019, when it was desperate for money.
Investors, who left the 33-year-old company to die last year, are betting that regulators will authorize Novavax’s vaccine in the next two months. They sent Nasdaq shares at $ 229, up 106% so far this year. Late last month, Novavax released preliminary data indicating that its injection was effective in protecting against Covid-19, although less against a new strain identified in South Africa that appears to be a challenge for other injections as well. The results of the last stage of vaccine testing in the United States may be released later this month.
Novavax now has a market cap of $ 15.4 billion, higher than that of companies with billions of dollars in annual sales, including generic drug giant Teva Pharmaceutical Industries Ltd.