Novavax Soars 80% After COVID-19 Vaccine Funding and Earnings

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Truman
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Novavax Seeks To Raise $250 Million From Share Sale

Novavax (NVAX) filed a prospectus to sell up to $250 million of shares of common stock as it prepares to scale up production of its coronavirus vaccine candidate.

Shares in Novavax jumped 31% to close at $56.96 in U.S. trading on Monday after their value more than doubled over the past month.

The late-stage biotech company, which is in the process of developing a coronavirus antigen vaccine candidate, said that the net proceeds from the sale of common stock will depend on the number of shares actually sold and the offering price for such shares. The company based its calculation on the event that all of the offered shares would be sold at $43.63, the closing price per share on May 15.

“We intend to use the net proceeds from this offering for general corporate purposes, including but not limited to working capital, capital expenditures, research and development expenditures, clinical trial expenditures, as well as acquisitions and other strategic purposes,” Novavax said in the prospectus filing.

The offering comes after Novavax announced last week that it will receive $384 million in funding from the Coalition for Epidemic Preparedness Innovations (CEPI) to develop and produce its coronavirus vaccine candidate. The biotech company has set itself the aim of producing up to 100 million vaccine doses by end of 2020. For 2021, it is planning to target large-scale manufacturing capacity in multiple countries with a goal of potentially producing over one billion doses during the year.