On May 11, 2020, Novavax, Inc. announced that they will receive $384 million, in addition to the $4 million previously received, from the Coalition for Epidemic Preparedness Innovations (CEPI). This funding is to be used for advancing the clinical development of the Novavax coronavirus vaccine NVX-CoV2373. It is the largest single investment CEPI has made up to this point and the organization believes it is a vital step in the rapid advancement of a vaccine to fight against COVID-19. As an investor, it’s important to understand the details of this funding and how it could impact your investment strategy.
What Will Novavax Use Its Funding For?
The primary use of the additional funding will help Novavax begin a two-phase clinical trial over the next few months. Phase I began in May 2020 in Australia and Phase II is expected to be conducted in various countries worldwide after the successful Phase I results are released in July. The funding will also be instrumental in process development for production, which is expected to help in manufacturing as many as 100 million doses of a COVID-19 vaccine by the end of the year 2020. This could be the beginning of even larger-scale manufacturing globally and the production of upwards of one billion vaccine doses throughout the year 2021.
Why CEPI Made Its Largest Investment In Novavax
CEPI chose to invest in Novavax due to its innovative practices and platforms, as well as their creative use of technology and other programs. It is believed that not only will Novavax be able to create an effective vaccine for COVID-19, but once the testing and development are completed, they can distribute large amounts of the vaccine worldwide to stop the spread. As stated by the Chief Executive Officer of CEPI, Richard Hatchett, “Our vaccine R&D programs are starting to show progress, so it is vital that we invest now to boost manufacturing capacity, so that our partners have the ability to produce vaccines at a global scale.”
How Investors Should View The Novavax And CEPI Partnership
When it comes to developing an investment strategy, Novavax appears to be a clear leader in the race to discover a coronavirus vaccine. However, this large amount of funding and forward-looking initiatives shouldn’t necessarily be viewed as a guaranteed investment success. One of the keys to portfolio management is evaluating uncertainties and risks, and those aspects will always be present. Even with a strong and promising partnership between Novavax and CEPI, an investor should proceed with caution based on their risk tolerance.
The fact that Novavax has received the largest amount of funding from CEPI to date is enough to get the attention of an investor. At Stock Investing Info, we will provide you with the information you need to know to develop the right investment strategy for your situation. Understanding the facts as well as the uncertainties are vital for investment success. Contact us today to learn more about Novavax and how it could fit into your investment portfolio.