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Novavax (NASDAQ: NVAX) has been a highly volatile stock in recent years, and that volatility is on full display again this month. Shares of the healthcare stock are up 200% since the start of May. Investors are feeling bullish on the stock once again as it has soared to a new 52-week high.
What’s behind this recent rally, and is it a reason to be optimistic about Novavax for the long haul?
On May 10, Novavax announced a co-exclusive licensing agreement with healthcare giant Sanofi. The companies are going to work together on commercializing Novavax’s adjuvanted COVID-19 vaccine worldwide, excluding areas where the company already has existing agreements. Sanofi will also be able to use Novavax’s Matrix-M adjuvant to develop its own products. It will take a minority stake of less than 5% in Novavax’s business.