United States will pay vaccine maker Novavax $1.6 billion to develop 100 million doses of a coronavirus vaccine by early 2021

Finance, News, Politics
Dr. Nita Patel, Director of Antibody discovery and Vaccine development, returns a box of potential coronavirus, COVID-19, vaccines to a fridge at Novavax labs in Gaithersburg, Maryland.

The Trump Administration’s Operation Warp Speed has struck a $1.6 billion deal with Maryland-based company Novavax {NASDAQ:NVAX} to fast track development of a Covid-19 vaccine. Warp Speed is the federal government’s ambitious effort to fast-track Covid-19 vaccine/treatments which would be made available to the American public as quickly as possible. The deal represents the biggest to date with the Trump administration’s Operation Warp Speed.

The deal will pay Novavax $1.6 billion to produce 100 million doses of this new vaccine by the beginning of 2021 if the vaccine is effective in clinical trials. This vote of confidence from the federal government has resulted in {NASDAQ:NVAX} stock to skyrocket by more than 30%. Though the Trump administration has now invested nearly $4 billion in 6 companies in attempt to find Covid-19 vaccines (the second largest being Oxford University and AstraZeneca’s {NYSE:AZN} $1.2 billion) little information is given to the public about how Operation Warp Speed is spending all of this money.

“Potential investors should recognize that Novavax is probably a good addition to their portfolio of biotech or COVID-19 vaccine stocks. There probably won’t be too many opportunities to purchase the stock at a discount, however, as positive results from phase 1 and phase 2 clinical trials are likely to catapult it even higher.”

The Motley Fool

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