Why Novavax, Inc. Shares Popped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biopharmaceutical company Novavax climbed 10% today after its quarterly results topped Wall Street expectations.
So what: The stock has soared in recent months on optimism over Novavax's development progress, and today's Q4 results -- net loss of $14.1 million on a revenue spike of 92% -- only reinforce those good vibes. In fact, Novavax ended 2013 with $133.1 million in cash and marginal debt on its balance sheet, giving analysts plenty of confidence in its ability to fully fund its RSV vaccine in the U.S.
Now what: Don't expect the operating momentum to slow anytime soon. "This year we plan to report top-line results from our ongoing RSV and influenza studies, initiate our first RSV clinical trial in pregnant women and report top-line results from the first study of our H7N9 avian influenza vaccine candidate with our Matrix-M adjuvant," said President and CEO Stan Erck. "These will be important milestones for these programs for which I anticipate continued success in 2014." Of course, with the stock up more than 90% over the past six months and trading at a 60-plus price-to-sales, much of that success might already be baked into the valuation.
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The article Why Novavax, Inc. Shares Popped Today originally appeared on Fool.com.
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