Shares of Novavax (NVAX) - Get Report soared Tuesday after the biotechnology company announced it has received $4 million of funding from the Coalition for Epidemic Preparedness to develop a coronavirus vaccine.
CEPI is a global partnership between public, private, civil and philanthropic groups launched in 2017 to develop vaccines to stop epidemics.
CEPI and Novavax are discussing additional funding for Novavax’s work on the vaccine.
“This first stage of funding from CEPI is critical to enable ongoing development of our Covid-19 vaccine candidates,” Novavax CEO Stanley Erck said in a statement.
“We commend CEPI for its role as a vital partner to bridge the funding gap for innovative biotech companies like Novavax, which have robust vaccine technology platforms. Novavax is working tirelessly to create a vaccine against this growing epidemic.”
The company has produced and is now analyzing multiple vaccine candidates in animals before embarking on clinical trials. It said clinical testing will likely begin in late spring.
Novavax recently signed a deal with Emergent BioSolutions (EBS) - Get Report for the life sciences company to provide development and manufacturing services, supplying Novavax with vaccine product for preclinical and clinical testing.
Meanwhile, President Trump is expected to announce a fiscal stimulus package Tuesday in response to the virus. The measures may include a payroll tax cut and assistance to economically disadvantaged workers who are suffering from having to take time off from work.
More than 114,000 people have been infected with the virus globally, and more than 4,000 of them have died.
Novavax was trading at $12.55, up 25.25%.