Investors have rarely taken as much interest in medical research companies focused on vaccine development than they have in 2021. As of April, the World Health Organization (WHO) reports more than 131 million confirmed cases and 2.85 million deaths worldwide. Research companies have received billions of dollars in funding from the United States. Other countries have also contributed massive amounts of money to fund vaccine research.
Companies that create effective vaccines could create decades of profit potential, especially as new variants of COVID-19 arise. The virus could become a nuisance that requires annual vaccination, similar to influenza.
The renewed interest in vaccines has also encouraged investors to consider how researchers could make products that prevent other diseases. Influenza, a virus that evolves rapidly and requires a new vaccine each year, stands out as one example.
When looking for investment opportunities that will build long-term wealth, it makes sense to evaluate Novavax revenues, products, and upcoming vaccines so you can decide whether you want to purchase stocks that will contribute to your portfolio’s success.
Novavax Revenues Set to Soar?
Before taking a close look at a Novavax valuation, spend a few minutes learning about the company’s history. Somewhat unbelievably, the company has been operating since 1987 without releasing a product. Currently, it has three labs (a headquarters in Gaithersburg, MD and other facilities in Rockville, MD and Uppsala, Sweden.
How does a company stay afloat without earning revenues from products? Much of the funding has come from donors, including the Bill & Melinda Gates Foundation, which recently awarded the company a $15 million grant for HIV and pneumonia treatment research.
The foundation’s most recent contribution brings its total funding to about $100 million.
The Coalition for Epidemic Preparedness Innovations (CEPI) recently awarded Novavax $384 million to fund phase 1 and 2 clinical trials of a COVID-19 vaccine.
Novavax revenues are set to mushroom higher as more governments and organizations pour money into products in phase 3 testing. NVX-CoV2373, the company’s coronavirus vaccine, will obviously attract a lot of attention and money.
Noravax revenues should also increase when it takes two more phase 3 vaccines to market:
- NanoFlu, a seasonal influenza vaccine created specifically for adults 65 and older.
- ResVax, a vaccination that doctors can give mothers to protect newborns and infants from respiratory syntactical virus (RSV).
- More than 57,000 hospitalizations per year.
- About half a million emergency room visits
- About 1.5 million clinic visits per year.
Those statistics only include children under five years old. Immunization would save the healthcare industry considerable money while helping children avoid serious illness.
Novavax Profits Could Explode?
Novavax profits could explode over the next few years as even more products complete phase testing and go to market.
Novavax profits could increase significantly once its RSV F Vaccine for adults 60 years and older reaches the market. Currently, the company has completed phase 2 trials and is preparing for phase 3.
The company also has two vaccines in phase 1 trials:
- RSV F Vaccine for children between 6 months and 5 years.
- Ebola GB Vaccine trials show that the vaccine works well in non-human test subjects and seems well tolerated by humans.
Noravax has three vaccines in the preclinical stage:
- Combination Seasonal Influenza/RSV F Vaccine for adults 60 years and older.
- Middle East Respiratory Syndrome (MERS) Vaccine.
- Severe Acute Respiratory Syndrome (SARS) Vaccine.
It could take years before these three products reach the market. Still, they provide evidence that Novavax has the potential to keep growing.
Increased Novavax profits and revenues should lead to higher stock prices. Industry analysts already believe that the stock’s price will reach $38.37 by December 2022. That’s an $18.43 increase from December 2021, when shares sold for $19.94.
Will Novavax Fail?
Of course, there is always the chance that Novavax’s products will not pass clinical trials and reach the market. The Novavax valuation could withstand losing a couple of the products—or at least delaying them by a few years so researchers can make them safe for humans.
If several of the vaccinations do not reach the market, the company’s benefactors will eventually stop funding research. Novavax has been extremely fortunate to attract government and non-profit support for decades.
Currently, it does not have the ability to generate profits through sales. It cannot even produce revenues through sales until a government agency approves one of its vaccines.
It seems highly unlikely that Novavax will fail to bring most of its vaccines to the market, though. People like Bill Gates don’t tend to give money to failing concepts. It might take some time to put products on the market, but it seems like Novavax has the right approach to research that will lead to successful vaccines.
Novavax Valuation: Lots of Upside
The Novavax valuation shows that the company’s stock value has high volatility over the last year. It also shows that it has a high upside, suggesting that the company has room for growth. Investing in the company now could give you an opportunity to purchase shares that will become much more valuable in the near future.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.