Novavax Forecast August 2021 – Time to Buy NVAX Shares?

Shares of American biotechnology company Novavax (NASDAQ: NVAX) are up by 8.71%, closing at $251.00 on 23 August (7:59 pm GMT-4). NVAX shares are up by 5630% since January last year but it has yet to market its potential COVID-19 vaccine called NVX-CoV2373 which is still in a clinical stage. Despite its high price, there are some investors who think that the shares are worth buying.

Novavax – Technical Analysis

According to the financial statement released by Novavax, the market cap of the company is at £18.696 billion with total assets worth £2.75 billion. Revenue for 2020 was at £475.60 million, compared to £18.66 million in 2019.

Moving averages such as Exponential Moving Average (100)(196.41), Simple Moving Average (100)(192.30), Exponential Moving Average (200)(175.30) and Simple Moving Average (200)(178.57) are showing a strong buy action. On the other hand, the majority of oscillators such as Relative Strength Index (14)(60.16), Stochastic %K (14, 3, 3)(66.86) and Commodity Channel Index (20)(103.29) and Average Directional Index (14)(16.68) are neutral.

67% of all retail investor accounts lose money when trading CFDs with this provider.

Recent Developments

Novavax published the results of 3 clinical trials conducted in the U.S. and Mexico which showed 100% efficacy against moderate and severe cases of the disease with an overall efficacy of 90.4%. It also proved to be efficient against the Delta variant of the virus. The vaccine has less stringent storage temperature requirements which can be met by normal refrigerator units. By contrast, Moderna’s vaccine needs to be stored between -50 degrees Celsius and -15 degrees Celsius while Pfizer’s vaccine requires storage with temperatures ranging between -80 degrees Celsius and -60 degrees Celsius.

However, Novavax has yet to submit its vaccine for regulatory review in the United States, which can be a worrying sign for investors. Novavax’s management keeps delaying the timeline for regulatory submission which was pushed back from the 3^rd quarter to the fourth quarter (between October and December) of this year. The company has signed advance purchase agreements for its product including a deal for 100 million doses with European Medicines Agency, with an option of delivering an additional 100 million through 2023.  It has also filed for authorisation for its product in the Philippines, Indonesia, India and the European Union.

Additionally, the company has tied up with Gavi, an organization whose goal is to increase access to immunization worldwide, particularly in less developed countries to deliver 1.1 billion doses of the vaccine. As per the report released on June 30^th, the company has $2.1 billion in cash, largely due to the $1.1 billion in payments for APAs it received. All of this is an indication of the continued confidence that third parties have over the companies vaccine, which is good news for NVAX shareholders.

Should You Buy NVAX Shares?

Many analysts agree that the market hasn’t fully captured the company’s potential in the market, which means that it has not peaked. Investors should also consider the company’s other products, such as the potential vaccine called NanoFlu, which is meant for adults aged 65 and older. Considering that patients aged 65 and above account for the most annual hospitalizations and deaths from the flu every year in the United States, it could present an opportunity for the company.

This is one of the reasons why the U.S. Food and Drug Administration granted fast track designation to NanoFlu, which sped up its review process. The company is also in talks of delivering a combined flu and Covid-19 vaccine. Thanks to all these projects in the pipeline, the overall prospects of the company still have some significant upside left. Considering this, investors can buy NVAX shares at the current price.

Buy Novavax Shares at CedarFX, the World’s #1 Trading Platform