After a 26% Drop, Should You Give Up on Novavax?
It was the moment we all were waiting for. The U.S. Food and Drug Administration (FDA) granted Novavax's (NASDAQ: NVAX) coronavirus vaccine Emergency Use Authorization (EUA) last week. Originally, Novavax had hoped to win access to the U.S. market last year. But manufacturing struggles delayed its regulatory request by several months.
Meanwhile, Novavax has gained authorization in nearly 40 other countries over the past several months -- and started to generate revenue and profit from its vaccine. So, we might have expected the shares to climb following the nod from the U.S. Instead, they lost 26% in one trading session. Now, Novavax shares are down about 60% year to date. Does this mean it's time to give up on Novavax? Let's take a closer look.
There may be a few reasons behind Novavax's one-day drop. First, there's a bit of "buy the rumor, sell the news" going on. The stock actually climbed 22% from the first day of July until Novavax announced its product authorization on July 13.
Source Fool.com
