Novavax Inc. (NASDAQ:NVAX) has been performing poorly in recent times, but its stock received a boost recently following a $384 million from the Coalition for Epidemic Preparedness Innovations to advance the development of a COVID-19 vaccine. Similarly, the company has filed a prospectus to aid the efforts, and it will sell around $250 million worth of its common stock.
Novavax receives cash injection to advance its Covid-19 vaccine candidate
This recent cash infusion from the foundation brings its contribution to the company to around $388 million. Novavax is among the several companies that are working in the development of a COVID-19 vaccine.
This was the largest infusion into a company advancing the development of a coronavirus vaccine until last week when the US Biomedical Advanced Research and Development Authority gave AstraZeneca (NYSE:AZN) over $1 billion. The amount is meant to aid the development, production as well as delivery of its Covid-19 vaccine. AstraZeneca is planning to carry out third phase trails with around 30,000 subjects and also a pediatric trial.
The Maryland-based Novavax developed its coronavirus vaccine candidates using its novel recombinant protein nanoparticle tech platform. Novavax has had success working with other coronaviruses such as SARS and MERS. It is expecting to have the first phase tests of the vaccine candidate in the coming weeks. Also, the company has been scaling its manufacturing and expects to produce 1 billion units in 2021.
Novavax shares have lost 80% in five years following failed vaccine tests.
The announcement of capital infusion from CEPI gave Novavax stock a boost taking its prices to a high of $61.5 in 2020. Shares have however, retreated to around $46 per share. Last year NASDAQ rattled the company warning it of delisting if it failed to get its price beyond $1. The company avoided embarrassment by offering a 1-for-20 reverses shares split.
In the last five years, the company has shed over 80% of its value following a series of failed vaccine tests. The last occurred in September last year after EU regulators canceled authorization of the company’s respiratory infection drug.