This Stock Just More Than Doubled in 1 Day: Is It a Buy?

Vaccine maker (NASDAQ: NVAX) isn't dead in the water after all. Though the past 18 months have been tough -- and management warned investors that the business might sink soon -- Novavax reported positive developments in its latest quarterly update that doubled its share price in just one day. The biotech has come a long way since its not-so-successful attempt at dominating the coronavirus vaccine market. But do more recent developments make Novavax's stock a buy?

Novavax has struggled to generate enough sales from its COVID-19 vaccine -- called Nuvaxovid outside the U.S. -- to make the stock attractive. Given the uncertainty of this market and the fact that the biotech's next product wouldn't be launched for at least two years, Novavax looked like far too risky an investment. Enter Sanofi (NASDAQ: SNY), a France-based biotech with a growing vaccine portfolio.

Sanofi will pay $500 million up front to Novavax for the right to co-commercialize Nuvaxovid worldwide (except in a few select countries). The vaccine is authorized in the U.S. but hasn't yet received full approval, although Novavax has submitted an application to the U.S. Food and Drug Administration along those lines.

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Source Fool.com