Biomedical companies Moderna and Novavax (both stock prices rose on Friday, due to previous news that AstraZeneca (NASDAQ: AZN) and its partner at Oxford University may have to host another new crown pneumonia vaccine candidate for joint development After the test, it can be approved by the US regulatory agency.
Finally, Moderna stock price rose 16.4% to $ 127.03; the price of Novavax stock rose 22.5% to $ 125.69.
A few months ago, the new crown pneumonia vaccine developed jointly by AstraZeneca and the University of Oxford appeared to be one of the first vaccine products to be marketed. However, having discovered a large dose error in its later trials, it seems that this once promising vaccine is going to be a second- or third-line product.
From a business perspective, this opens a huge door for smaller companies like Moderna and Novavax. Moderna’s courier RNA (MRNA) vaccine has achieved outstanding results in its late-stage trials, and it is expected that the company will apply for an urgent use authorization to the US Food and Drug Administration (FDA) in the next few days.
Novavax, by contrast, lags a bit in its more traditional protein-based vaccines, but the company may enjoy some key logistics advantages compared to “front-runners” like Moderna and Pfizer (NYSE : PFE). In fact, having reported AstraZeneca’s clinical blight, Novavax now has a great chance of getting approval from the US authorities and become the third company to be approved for a new crown pneumonia vaccine.
The reason why investors raised Modelna and Novavax shares today is simple. AstraZeneca blockchains may bring hundreds of millions or even billions of additional sales to their vaccine candidates.
However, in the long run, these innovative biotechnologies may have more room for development. Moderna has a very diverse range of high value courier RNA vaccines and therapeutic drugs, while Novavax will become a company producing only two products (new crown pneumonia and influenza vaccines) by the end of 2021. So for investors who failed to rally on Friday, it may be worth buying some stocks in these two biotech companies now.
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