Novavax Stock News and Forecast: NVAX stock rises on vote for FDA approval

• Novavax stock rises on Tuesday as FDA panel votes to recommend approval of its covid vaccine.
• NVAX stock closes 6% higher Tuesday at $47.54.
• NVAX soars another 20% afterhours on Tuesday.

Novavax (NVAX) stock rose sharply on Tuesday after the market closed when an FDA panel voted to recommend its covid vaccine. The shares had already been strong and rose 20% higher following the announcement. At the time of writing on Wednesday morning though, NVAX has given back about half of those gains to trade currently at $52.30, still 10% higher than Tuesday's regular session close.

Also read: Apple Stock Deep Dive: AAPL price target at $100 on falling 2023 revenues

Novavax stock news

The FDA Vaccines & Related Biological Products Advisory Committee (VRBPAC) voted 21 to 0 in favor of granting Emergency Use Authorization (EUA) to Novavax's covid vaccine. There was one abstention from the vote. The vote was based on data from a clinical trial involving 30,000 participants that showed 90.4% efficiency against covid. The vaccine has already been approved by numerous countries as well as already given Emergency Use Listing from the World Health Organization. This latest vote does not yet constitute approval. The FDA will have to rubber-stamp the VRBPAC recommendation. 

"The advisory committee's positive recommendation acknowledges the strength of our data and the importance of a protein-based COVID-19 vaccine developed using an innovative approach to traditional vaccine technology," said Stanley C. Erck, President and CEO. "In today's VRBPAC meeting, we heard the overwhelming support for our vaccine from physicians, healthcare organizations, and consumers who are eagerly anticipating a protein-based vaccine option."

Novavax stock forecast

Despite this apparent positive development NVAX stock remains in a powerful downtrend, so it remains to be seen if this is enough to reverse the decline. We may already be at the late stage of covid given its mutation and strong immunity in the developed world at least. We have witnessed a similar decline for Moderna (MRNA).

Moderna chart, daily

Novavax has shown a similar trait, and it has not been as productive as Moderna in vaccine distribution. NVAX had a classic double-top back in November and December, which led to the current decline. NVAX then declined to its long-term fair value zone, highlighted back in 2018 and 2019. The current retracement does look like an attractive entry point from a longer-term perspective. The first target is the small area of consolidation around $80. From there, a break higher to test the double bottom at $121 would seem likely.

NVAX chart, weekly