The initial readouts of phase 3 trials for COVID-19 vaccines have been impressive. With efficacy rates as high as 95% (the average annual flu vaccine reaches only 40% to 60%), there's finally hope. All this progress, and ongoing plans to start administering these vaccines (when approved) to those most at risk, is wonderful news -- but where does it leave companies still working through clinical trials of their own candidates?
Novavax (NASDAQ: NVAX) chose a potential vaccine to test in April, and has experienced both progress and setbacks since.
Normally, when a biotech is developing a new drug, the constraint is money. But in Novavax's case, the issue is time. If other companies continue to get approvals for COVID-19 vaccines, will there be a place in the market left for Novavax even if it does end up getting regulatory approval? The company also has a new seasonal flu vaccine coming; how much will that contribute to sales? The answers to these questions and others will help investors understand whether the stock is a buy.
Source Fool.com