Look for a strong boost in shares of Novavax (NASDAQ:NVAX) today. After the bell, the Baltimore-based vaccine research company announced positive data from tests of its VLP technology against two live virus strains of the avian flu:
"These are the first live-virus challenge data we have presented," said Dr. Rick Bright, Novavax's Vice President of Global Influenza Programs. "These new data are exciting because not only do our VLP vaccines trigger a robust immune response, but we have shown that a single vaccine can protect against two different strains of pandemic influenza." Human tests are expected to begin later this year.
The news comes on the heels of an announcement that the company had made substantial progress on its HIV/AIDS vaccine, and would soon begin clinical trials.
Bottom line: I expect that Novavax's share price will soon begin to reflect the positive momentum apparent in the company's clinical and development programs. If either of these vaccines is remotely successful, NVAX will see tremendous upside. I wouldn't be surprised to see the shares over $5 by the end of the week and over $10 by the end of the year.
Disclosure: I am long NVAX.
From Dec. 5: Smallcap Novavax Has Turned a Corner
NVAX 1-yr chart: