Novavax shares are soaring 37.21% premarket to $106.50 after announcing the company will receive shortly $1.6 billion funding from the federal government to speed up the creation of the COVID-19 vaccine.
As possible COVID-19 second wave approaches, many governments worry about public health for this fall and winter since the virus gets stronger in cold weather. Coming up fast with an effective vaccine against the virus depends not on only biotech corporations but investors and governments aiding with enough funding to save people’s health.
To finish the late pre-clinical stage of vaccine development and phase 3 trial Novavax needs efficient funds even if they will be started this fall.
NASDAQ: NVAX is rising because of positive news about COVID-19 vaccine development. Its revenue may soar after finishing the complete vaccine but all the revenue costs and operating expenses could never be covered as the public does not want a monopolistic behavior from the healthcare-related companies.