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Novavax (NASDAQ:NVAX) shares jumped more than 17% on Monday after the U.S. Food and Drug Administration granted full approval to its COVID-19 vaccine, Nuvaxovid, for adults aged 65 and older.
The shot, previously authorized for emergency use, also becomes commercially available for individuals aged 12 to 64 with underlying health conditions that heighten the risk of severe illness.
Developed with Sanofi (NASDAQ:SNY), the protein-based vaccine is an alternative to existing mRNA options. Sanofi will now lead commercialization efforts and pay Novavax a $175 million milestone fee tied to the FDA's approval.
Novavax expects additional revenue through future royalties as the vaccine rolls out in upcoming seasons. The company aims to begin commercial delivery of its 20252026 version this fall.
CEO John Jacobs said demand could be robust, citing health data indicating older adults and those with medical vulnerabilities are most likely to seek seasonal COVID-19 shots.
This article first appeared on GuruFocus.