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Dear Novavax (NVAX) Stock Fans, Mark Your Calendars for June 7

Investor Place · 04/29/2022 15:26

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Shares of Novavax (NASDAQ:NVAX) stock are in the spotlight today after a positive development from the U.S. Food and Drug Administration (FDA). Specifically, the FDA announced that its advisory committee will meet on June 7 to review the company’s emergency use authorization (EUA) submission for its Covid-19 vaccine. The experimental vaccine, NVX-CoV2373, has already been authorized by the United Kingdom, Europe and the World Health Organization (WHO).

Novavax (NVAX) vaccine for prevention of coronavirus, Covid-19, Sars-Cov-2 in doctors hands in rubber blue gloves
Source: Vladimka production / Shutterstock.com

This morning, NVAX stock was up as much as 14% this morning before giving away about 10% of its gains. However, the company has also lost more than 60% of its value since the beginning of 2022.

Here’s what investors should know about NVAX stock moving forward.

NVAX Stock: FDA to Discuss Vaccine on June 7

Earlier this month, an official from the FDA characterized the review process for the vaccine as “incredibly complex.” However, the EUA submission has been sitting in the FDA’s hands for several months now, so a specific review date is great news.

Novavax’s vaccine can be stored in a normal refrigerator for up to six months, which makes it ideal for international shipping. According to the results of a Phase 3 clinical trial in December, NVX-CoV2373 is also 90.4% effective against infection and 100% effective against moderate to severe illness. The trial was conducted using 29,949 adults in both the U.S. and Mexico.

After two doses of the vaccine, anti-spike antibody levels against the omicron variant saw a 61.1-fold rise. After a third dose, six months after the second, antibody levels against omicron increased 73.5-fold. Furthermore, no moderate or severe illness was reported in participants who received the vaccine.

Last year, the Serum Institute of India made a deal with Novavax to produce the vaccine under the name Covovax. Novavax also begin clinical studies for an omicron-specific vaccine last January.

Who Is Betting Big on Novavax?

Tracking institutional ownership is important, as these large funds provide liquidity and support for stocks. Analyzing which funds own Novavax is also important because said funds are likely betting on the success of its vaccine. During the fourth quarter, 415 funds reported owning the company, a decrease of 16 funds from the previous quarter. Meanwhile, the institutional put/call ratio lies at 1.82, up from 1.32 in the prior quarter. This signifies that funds are holding more put options against Novavax than call options. The high put/call ratio doesn’t add up well for the company.

So, with that in mind, let’s take a look at the five largest shareholders of NVAX stock:

  1. Vanguard Group: 6.89 million shares or 9.04% ownership.
  2. BlackRock (NYSE:BLK): 4.39 million shares or 5.76% ownership.
  3. RA Capital Management: 2.09 million shares or 2.75% ownership.
  4. State Street (NYSE:STT): 1.89 million shares or 2.49% ownership.
  5. Susquehanna International Group: 1.26 million shares or 1.66% ownership.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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