The 2 Likely Reasons Novavax Inc. Rocketed Higher by 25% in November

The 2 Likely Reasons Novavax Inc. Rocketed Higher by 25% in November

Shares of Novavax (NASDAQ: NVAX), a clinical-stage small-cap biotech company focused on the development of recombinant nanoparticle vaccines, surged by 25% during the month of November, according to data from S&P Global Market Intelligence. The reasoning for the move appears to be traceable to two catalysts.

Firstly, Novavax wound up reporting its fiscal third-quarter operating results toward the beginning of the month, and there were plenty of figures that encouraged long-term investors. Despite reporting a $44.6 million net loss for the third quarter, or $0.15 a share, this was $0.01 per share narrower than expected, and down considerably from the $66.3 million ($0.24 per share) it had lost in the year-ago period. Research and development costs tumbled 21%, while revenue surged 158% to $8.9 million under, which is derived from an existing $89 million grant. Since Novavax has no approved products, it relies on its cash on hand to keep the lights on. Smaller quarterly losses mean less in the way of cash burn, easing tensions a bit for skittish investors.

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Source: Fool.com