Is This a Good Sign for Novavax?

(NASDAQ: NVAX) shares soared more than 30% in one trading session this week. That's a huge gain for any stock. But it's particularly impressive for Novavax. The biotech stock has been in the doldrums ever since the company fell behind in the coronavirus vaccine race -- and statements from the company earlier in the year pushed the shares even lower. That's because Novavax called into question its own ability to keep its business going.

So, why the big gain now? Canada agreed to pay Novavax $350 million for unused doses of the biotech's coronavirus vaccine. This is an amendment to the original advance purchase agreement. Is this a good sign for the embattled company and for investors?

First, a little background on Novavax's problems. The company started out at the head of the coronavirus vaccine race -- and thanks to that posted a mind-boggling gain of more than 2,700% back in 2020. But when the company fell behind, investors took notice. The stock tumbled as Novavax's vaccine -- its only commercialized product -- entered the market at least a year behind rivals.

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Source Fool.com