Novavax Stock Up 9% on FDA Nod for Updated COVID-19 Vaccine

Group 1: Emergency Use Authorization and Vaccine Composition - Novavax's updated protein-based COVID-19 vaccine received emergency use authorization (EUA) from the FDA for individuals aged 12 years and older, making it the only non-mRNA vaccine option available in the U.S. [1] - The updated vaccine targets the JN.1 strain, while mRNA-based vaccines from Pfizer and Moderna target the KP.2 strain [3][4]. - The EUA was granted based on non-clinical studies showing effectiveness against current circulating strains, including KP.2.3, KP.3, KP.3.1.1, and LB.1 [7]. Group 2: Competitive Landscape and Market Position - Novavax's vaccine was authorized sooner than last year's delayed launch, which could help the company capitalize on the upcoming vaccination season [8]. - Year-to-date, Novavax's stock has increased by 157.9%, significantly outperforming the industry's growth of 0.6% [9]. Group 3: Partnership with Sanofi - Starting next year, Sanofi will co-market Novavax's COVID-19 vaccine globally and will have the sole license to develop and market it in combination with its influenza vaccine, with potential earnings of up to $1.2 billion for Novavax [10]. - The partnership with Sanofi is expected to enhance Novavax's market share and alleviate previous business uncertainties [11].