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Novavax ETFs to Shine Bright on Positive Vaccine Update

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Novavax (NVAX - Free Report) is a formidable name on the list of companies, which are developing a COVID-19 vaccine. It recently announced very impressive updates on its protein-based COVID-19 vaccine candidate, NVX-CoV2373. The company’s vaccine candidate has delivered final efficacy of 96.4% in a pivotal Phase 3 trial in the U.K., against mild, moderate and severe diseases caused by the original COVID-19 strain.

Going on, Novavax has informed investors about the complete analysis of its Phase 2b trial taking place in South Africa. In the region, marked by vast majority of strains that are B1.351 escape variants, the company’s coronavirus vaccine candidate delivered 55.4% efficiency among the HIV- negative trial participants. Encouragingly, both the studies conducted by the company have met statistical success parameters. Novavax is planning to submit the data for authorization to several regulatory agencies globally. Notably, the company is projecting to receive data from a 30,000-people trial in the United States and Mexico by early-April, per a Reuters article.

In this regard, Stanley C. Erck, President and Chief Executive Officer, Novavax has reportedly said, “We are very encouraged by the data showing that NVX-CoV2373 not only provided complete protection against the most severe forms of disease, but also dramatically reduced mild and moderate disease across both trials. Importantly, both studies confirmed efficacy against the variant strains.”

With regard to the coronavirus vaccine development and distribution, positive news is doing rounds. The FDA has awarded the Emergency Use Authorization to COVID-19 vaccine developed by Janssen Pharmaceutical Companies of Johnson & Johnson (JNJ - Free Report) . The company has also informed that the U.S. Centers for Disease Control and Prevention's (CDC) Advisory Committee on Immunization Practices (ACIP) has recommended its vaccine.

Johnson & Johnson has started shipping and aims at delivering more than 20 million doses to the U.S. government in March and targets 100 million doses in the first half of 2021. Going on, Merck & Co., Inc. (MRK) has signed multiple agreements to make available its existing manufacturing facilities for the development of COVID-19 vaccines and medicines after its own efforts to create vaccines failed. It has signed a deal with Johnson & Johnson to support manufacturing of the latter’s single-shot COVID-19 vaccine.

In fact, President Joe Biden has stated that the country is expected to have sufficient COVID-19 vaccines for adults who want to get vaccinated by the end of May, per a YahooFinance article.

Novavax ETFs That Can Gain

The competition to come up with a vaccine is opening up near-term opportunities, making the biotech sector a prospective space for investments. Therefore, we discuss a few ETFs that provide exposure to Novavax, which was up around 22% in after-hour trading after the announcement of encouraging vaccine data. Also, shares of the company have gained a whopping 1,541.3% in the past year:

ETFMG Treatments Testing and Advancements ETF (GERM - Free Report)

Launched on Jun 17, 2020, the fund is designed to provide exposure to biotech companies directly engaged in the testing and treatment of infectious diseases. It is focused on advancement with targeted exposure to the forefront of R&D, vaccines, therapies and testing technologies. GERM holds a basket of 67 stocks, with Novavax occupying about 5.1% weight.  It charges a fee of 68 basis points (bps) a year and has AUM of $56.1 million (read: 6 ETF Areas That Are on High Momentum).

VanEck Vectors Biotech ETF (BBH - Free Report)

The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. It holds about 24 securities in its basket, with 4.2% exposure to Novavax. Its AUM is $472.5 million and it has an expense ratio of 0.35% (read: ETFs to Tap Amgen's Drive for Cancer Deal).

Other broader biotech ETFs that hold companies developing tests, vaccines and therapies for coronavirus include:

iShares Nasdaq Biotechnology ETF (IBB - Free Report)

This fund seeks to provide exposure to U.S. biotechnology and pharmaceutical companies and tracks the Nasdaq Biotechnology Index. It comprises 282 holdings. It has AUM of $10.20 billion and charges a fee of 46 bps a year (read: 5 ETF Investing Areas for March to Boost Returns).

SPDR S&P Biotech ETF (XBI - Free Report)

The fund seeks daily investment results, before fees and expenses, which match the S&P Biotechnology Select Industry Index. It holds about 170 securities in its basket. It has AUM of $7.12 billion and an expense ratio of 0.35% (read: ETF Areas Thriving During Coronavirus Pandemic).

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