Novavax vs Moderna: Updated Novavax Covid Vaccine Wins FDA and CDC Approval

Key takeaways

• Moderna has secured approval from the FDA and CDC to take its upgraded Covid vaccine to market
• It will be offered as an emergency alternative to the Pfizer and Modern vaccines, which have already been approved
• Novavax shared popped as much as 13% at the announcement

Novavax has gained approval from the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) for its updated Covid vaccine, set to roll out imminently as an alternative to the existing vaccines on the market.

Pfizer and Modern have already beaten Novavax to the punch with upgraded Covid vaccines but differ slightly from the other two companies’ injections, which might appeal to some consumers looking for an alternative.

Let’s get into the latest details about the updated Covid vaccine from Novavax and how the markets reacted to the news.

What’s the latest with Covid vaccines?

Novavax has gotten approval for its latest upgraded Covid vaccine from the FDA and CDC, which the company confirmed works against the latest Eris and Omicron strains. The vaccine is now approved for emergency cases for people aged 12 and above.

The Novavax jab is a good option for those not looking to take the messenger RNA shots from Pfizer and Moderna. The healthcare company’s vaccine technology fights the virus with protein-based tech, which is a common approach for shingles and hepatitis.

Already, two million Americans have received the Covid vaccines from Modern and Pfizer, at a time when Covid levels are on the rise again. But Novavax is far behind its peers, having only delivered 89,000 vaccines as of this May.

A Novavax statement confirmed the jab would be available in a few days. “Novavax’s authorization today means people will now have the choice of a protein-based non-MRNA option to help protect themselves against Covid-19, which is now the fourth leading cause of death in the U.S.,” said Novavax CEO John Jacobs in the statement.

What was the market reaction?

Novavax’s share price soared by 13% at the news to a high of $8.05 before dropping down again. The stock is currently trading at $7 and has lost 28% in value this year. Compared to its competitors, Moderna has lost 44% of its value since the start of 2023 and Pfizer has declined 35%.

The company was already struck by financial uncertainty earlier this year after the biotech business said there was “substantial doubt” about its ability to continue trading, nothing its operations were “subject to significant uncertainty” related to 2023 revenues. In short, Novavax really needs these Covid vaccines to go well this year.

The bottom line

For a company that’s in financial trouble, Novavax will be breathing a sigh of relief that it’s gotten approval to start selling the vaccine. It’s weeks behind Pfizer and Moderna, but hopefully, the sales from this winter are enough to sustain the company past its difficulties and into a more profitable future.