Novavax Soars as Settlement with Gavi Vaccine Alliance Catapults Shares
Novavax, represented by the ticker NVAX, saw a remarkable surge of 8.4% in its share price during its latest trading session, ultimately closing at a respectable $5.29. This substantial jump was fueled by a surge in trading volume, demonstrating a buoyed uptick compared to regular sessions. Notably, this surge follows the stock’s already impressive 19% gain over the prior four weeks.
Investor interest in the company intensified after Novavax announced a substantial settlement with the esteemed Gavi Vaccine Alliance regarding an advance purchase agreement inked back in 2021. As per the terms of this newfound settlement, Novavax instantly disbursed $75 million, coupled with agreeing to a subsequent annual deferral payment scheme amounting to $400 million by 2028-end.
Gavi Vaccine Alliance, in a paradigm shift, was also given the option for $80 million in payment via vaccine credits. These credits enable Gavi to procure any of Novavax’s vaccines (endorsed by Gavi) to cater to low and lower-middle income nations. The utilization of such credits would significantly lessen Novavax’s yearly cash commitments.
Moreover, beyond fulfilling their annual obligations, Novavax will further extend vaccine credits of up to $225 million to satisfy unforeseen additional demands over the next five years.
Anticipated Break-even Earnings on the Horizon for Novavax
The horizon looks bright for this vaccine manufacturer as it is poised to deliver break-even quarterly earnings per share in its forthcoming financial report, showcasing a staggering year-over-year growth of +100%. Revenue forecasts stand strong at $424.4 million, reflecting a notable 18.8% uptick compared to the same period the prior year.
While gauging a stock’s strength, delving into earnings and revenue growth projections holds paramount significance. Research indicates a robust correlation between earning estimate revisions and immediate stock price movements expedited by these trends.
Undeniably, Novavax witnessed a substantial 78.9% upsurge in the consensus EPS estimate for the quarter over the last 30 days. Typically, such optimistic earning revision patterns translate seamlessly into price appreciation. Investors would be wise to track NVAX closely moving forward, monitoring whether this recent surging trajectory materializes into sustained strength.
On the Cusp of Potential: Novavax’s Current Zacks Rank
Presently, Novavax holds a Zacks Rank #3 (Hold). Meanwhile, its industry peer in the Zacks Medical – Biomedical and Genetics sector, Voyager Therapeutics, symbolized by VYGR, closed its last trading session with a commendable 6.1% increase at $8.18. This performance comes on the heels of a 1.3% monthly return for VYGR.
Voyager Therapeutics sustains a consensus EPS estimate for its forthcoming report, which has remained constant over the past month at -$0.59. Compared to the firm’s EPS from the yesteryears, this projection signifies a notable shift of +3.3%. Presently, Voyager Therapeutics claims a Zacks Rank of #3 (Hold).
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