Monday June 18, 2012
by Konrad Kuhn, editor Kon-Lin LetterExperts agree that vaccination is the cornerstone for prevention of annual epidemics of influenza, as well as future pandemics.
Novavax (
NVAX) is a low-priced speculative play in this market.
NVAX is a clinical-stage biopharmaceutical company creating novel recombinant vaccines. It's platform is based on proprietary technology that eliminates the costly and lengthy process of producing vaccines with eggs -- a 50-year old technology.
Revenues in fiscal 2011 were $14.7 million, with the net loss narrowing significantly from $0.34 to $0.17 a share.
The increase in revenue was due to the awarding of a contract -- valued up to $179 million -- by the Office of Biomedical Advanced Research and Development Authority for advanced clinical development of recombinant vaccines for the prevention of seasonal and pandemic flu.
In addition, the company was awarded a $1.3 million contract from the US Department of Homeland Security for the development of a vaccine for foot-and-mouth disease.
The company also reported encouraging results from their recombinant nano-partical vaccine for the prevention of RSV, a highly contagious disease with no approved vaccine ... yet.
The stock has been hit hard, like many in the low-priced stock arena and is now trading in the area of last year's low. We would now buy for a first target back up to the $4.25 level.
Learn more about this financial newsletter at Konrad Kuhn's Kon-Lin Letter.
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