ETFs

Novavax Vaccine to Get U.S. Approval? ETFs to Benefit

Novavax NVAX is reportedly set to receive the fourth authorization for COVID-19 vaccine in the United States.According to a report by Politico, there is hope that the Novavax vaccine can boost supplies, as both safety  and production issues weigh on the Johnson & Johnson JNJ and AstraZeneca AZN shots.

History Behind the Vaccine

Novavax started the first human study of the vaccine on May 25. On Dec 28, the drugmaker started a phase 3 clinical trial for its COVID-19 vaccine, making it the fifth drugmaker to enter phase 3 trials for a COVID-19 vaccine in the United States. In July, the U.S. granted $1.6 billion to Novavax to support its COVID-19 vaccine candidate. The drugmaker has assured that it will deliver 100 million doses of the vaccine to the county.

In March 2021, the company offered impressive updates on its protein-based COVID-19 vaccine candidate, NVX-CoV2373. The company’s vaccine candidate has delivered the final efficacy of 96.4% in a pivotal Phase 3 trial in the U.K., against mild, moderate and severe diseases caused by the original COVID-19 strain.

About two months back, the company projected to receive data from a 30,000-people trial in the United States and Mexico by the end of this month. In a U.K. trial, the Novavax vaccine came out as effective as the mRNA shots pf Pfizer and Modena.

This piece of information makes it clear why Novavax is said to be on the verge of receiving the approval for emergency use as early as May, per a CNBC article. However, the timeline could be delayed by one or two months if the FDA plans to wait for the U.S.-based trial data, Novavax CEO said.

South Korean firmSK Bioscience will produce 40 million doses of the Novavax vaccine this year. The Novavax vaccine will help stop the likely supply crunch in the coming months as is being seen in the United States, European nations, and India. Interestingly, Novavax has never launched a product to market and if approved, the COVID-19 vaccine would be its first commercial success.

The best part is that the Novavax vaccine does not need extremely freezing temperature for storage, unlike vaccines developed by Pfizer and Moderna (MRNA). Hence, the Novavax vaccine’s commercial success looks to be sure thing, if it doesn’t trigger any safety issue over the long run.

Market Impact

Novavax shares jumped 15% in the past five days against 0.2% gains in the S&P 500. If the company gets EUA in the United States soon, we expect further rally ahead in the stock. Novavax has considerable weightin some ETFs. Understandably, those ETFs will also gain.

ETFMG Treatments Testing and Advancements ETF GERM – 5% weight in Novavax

VanEck Vectors Biotech ETF BBH – 4.69% weight in Novavax

VanEck Vectors Social Sentiment ETF BUZZ – 2.96% weight in Novavax

Other broader biotech ETFs and some COVID-19-themed ETFs can also include the stock if it gets an FDA approval soon. These ETFS could be:

iShares Nasdaq Biotechnology ETF IBB

SPDR S&P Biotech ETF XBI

The Pacer Bio Threat ETF VIRS

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Johnson & Johnson (JNJ): Free Stock Analysis Report
 
AstraZeneca PLC (AZN): Free Stock Analysis Report
 
Novavax, Inc. (NVAX): Free Stock Analysis Report
 
ISHARES NDQ BIO (IBB): ETF Research Reports
 
SPDR-SP BIOTECH (XBI): ETF Research Reports
 
VANECK-BIOTECH (BBH): ETF Research Reports
 
PACR-BIOTHREAT (VIRS): ETF Research Reports
 
VANECK-V SOCSEN (BUZZ): ETF Research Reports
 
ETFMG-TR TST AD (GERM): ETF Research Reports
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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