Novavax Stock Drops 078 Percent Trading Volume Plummets to 489th Position Despite FDA Approval of Nuvaxovid

On May 20, 2025, Novavax, Inc. (NVAX) experienced a significant decline in its stock price, dropping by 0.78%. The trading volume for the day was 1.78 billion, marking a 73.17% decrease from the previous day and placing it at the 489th position in terms of trading volume for the day.

The U.S. Food and Drug Administration (FDA) has approved Novavax's protein-based COVID-19 vaccine, Nuvaxovid, for active immunization to prevent COVID-19 in adults aged 65 and older, as well as individuals aged 12 through 64 with underlying conditions that put them at high risk for severe outcomes from the disease. This approval provides an alternative to messenger RNA vaccines for these populations.

The approval of the Biologics License Application (BLA) for Nuvaxovid triggers a $175 million milestone payment from Sanofi, with additional milestones and ongoing tiered royalties to be recognized as earned. This collaboration and license agreement between Novavax and Sanofi, signed in May 2024, includes layers of value for Novavax, with Sanofi leading commercialization efforts starting this year.

The FDA's approval was based on pivotal Phase 3 clinical trial data demonstrating the safety and efficacy of Nuvaxovid in preventing COVID-19. The FDA has also requested a new postmarketing commitment to conduct a Phase 4 trial to further assess the vaccine's efficacy and safety in individuals aged 50 through 64 without high-risk conditions for severe COVID-19. Novavax is working closely with Sanofi to assess funding and execution of this new trial.