Novavax, Inc. (NASDAQ:NVAX) shares are trading higher Tuesday after the company announced it entered into a license agreement with Pfizer, Inc. (NYSE:PFE) for use of its Matrix-M adjuvant.
Licensing Agreement Details
Under the non-exclusive agreement, Pfizer will be able to use Novavax's Matrix-M adjuvant in its products across up to two disease areas, the companies said. Novavax will receive a $30 million upfront payment, plus the potential for up to $500 million in development and sales milestones, and is eligible for tiered high mid-single digit royalties on products that include Matrix-M. Pfizer will be responsible for development and commercialization, while Novavax will supply the adjuvant.
The companies did not disclose specific products or timelines tied to the licensed use of the adjuvant. The deal marks another collaboration for Novavax's Matrix-M technology and adds to its efforts to monetize its vaccine platform.
Technical Analysis
The stock is trading 9.3% below its 20-day simple moving average (SMA) and 4.6% below its 100-day SMA, indicating some short-term weakness while the longer-term trend remains intact. Over the past 12 months, shares have decreased by 8.85% and are currently positioned closer to their 52-week lows than highs, reflecting a challenging year for the stock.
The RSI is at a neutral level, suggesting that the stock is neither overbought nor oversold, while the MACD is below its signal line, indicating some bearish pressure. The combination of neutral RSI and bearish MACD suggests mixed momentum, leaving traders cautious.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Novavax, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Neutral (Score: 37.48/100) — The stock is not currently outperforming the broader market.
- Value: Risk (Score: 46.34/100) — Trading at a steep discount relative to peers.
The Verdict: Novavax’s Benzinga Edge signal reveals a stock that is struggling to gain traction in a bearish market. While the Value score suggests it may be undervalued, the low Momentum score indicates that traders should be cautious in the current environment.
NVAX Price Action: At the time of writing, Novavax shares are trading 2.25% higher at $8.19 according to data from Benzinga Pro.
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