Why Novavax Stock Dipped, Then Soared, on Monday
Just after the market opened on Monday, Novavax (NASDAQ: NVAX) shares were hit by an investor sell-off. This was an immediate, sharply negative reaction to a set of Food and Drug Administration (FDA) briefing documents concerning the company's NVX-CoV2373 coronavirus vaccine.
However, probably realizing that this reaction was panic-driven and perhaps unjustified, Novavax's shares staged an impressive recovery. They ultimately notched a gain on the day, closing more than 6% higher and trouncing the S&P 500 index.
The source of investor concern was the FDA's citing of four cases of myocarditis, a heart inflammation, recorded among the patients of a phase 3 clinical trial of the vaccine. The regulator wrote in its briefing, "These events raise the concern for a causal association with this vaccine, similar to the association documented with mRNA COVID-19 vaccines."
Source Fool.com
