Why Novavax Stock Is Plunging Today

Shares of Novavax (NASDAQ: NVAX) had plunged by 19.8% as of 10:54 a.m. ET on Thursday. This steep decline came despite the Food and Drug Administration (FDA) granting Emergency Use Authorization (EUA) for Novavax's COVID-19 vaccine on Wednesday.

Investors appear to be giving heavier weight to some negative news for Novavax than they are to its positive news. The European Medicines Agency (EMA) determined that severe allergic reactions are a potential side effect of Novavax's vaccine, according to an article published by Reuters. That Reuters article also noted that data from the European Centre for Disease Prevention and Control show that only around 250,000 doses of Novavax's COVID-19 vaccine have been administered in Europe so far.

The U.S. EUA for Novavax's COVID-19 vaccine is definitely an important milestone for the company. Had the FDA given it a thumbs-down, you can bet the vaccine stock would have crashed much harder than it did on Thursday morning.

Source Fool.com