An epidemic preparedness foundation boosted its funding in coronavirus vaccine maker Novavax to $388 million, sending NVAX stock soaring Tuesday.
The Coalition for Epidemic Preparedness and Innovation, or CEPI, is funding various efforts to develop a coronavirus vaccine. In March, the foundation pledged $4 million to Novavax. On Monday, Novavax said CEPI increased that funding by $384 million.
Novavax will use the money to fund clinical testing of its coronavirus vaccine. So far, the experimental vaccine has shown promise in animal testing. The biotech company plans to run a Phase 1 and Phase 2 study concurrently to rapidly advance the drug.
“We will focus on scaling up manufacturing and delivering clinical data for (coronavirus vaccine) NVX-CoV2373, while also simultaneously completing necessary actions needed to prepare our (application) filing for (influenza vaccine) NanoFlu,” Chief ExecutiveStanley Erck said in a written statement.
Preliminary results of the Phase 1 test of its coronavirus vaccine are expected in July.
NVAX Stock Soars On Funding
In morning trading on the stock market today, NVAX stock rocketed to a 14-month high. Shares catapulted 54.1%, near 37.70.
In addition to its coronavirus vaccine funding news, Novavax reported a 58-cent loss per share for the first quarter ended March 31. That narrowed from a per-share loss of $2.11 in the year-earlier period.
Sales decreased by 15% to $3.4 million. Novavax noted the decline was due to a clinical study testing a respiratory vaccine in 2019. That was partially offset by CEPI funding, the biotech company said in a news release.
Representatives of Novavax didnt immediately return a request for comment.
Highly Rated Biotech Stock
Shares of NVAX stock have a bullish Composite Rating of 95. The Composite Rating is a 1-99 score of a stocks fundamental and technical growth measures. This puts NVAX stock in the top 5% of all stocks.