Should You Invested $1,000 at Novavax's IPO, This Is How Much You'd Have Today
And that is after a substantial recent drop.
These jaw-dropping gains may make you wish you'd purchased shares of Novavax back when the biotech public. If the inventory has dropped so much this season, the yields for investors who got in on the ground floor has to be really shocking, correct? Not really.
An unremarkable return
The fast reply to this question is that you would not have lost or made any cash investing $1,000 from Novavax's IPO. Why? Novavax never ran an IPO.
But let us assume that you could purchase Novavax in the market open on Dec. 5, 1995 -- the very first day the biotech stock traded openly. You'd have had $55 leftover since in these days you could not buy partial shares.
Fast forward to now. Those 14 stocks would now be worth approximately $2,050 as of the writing. That translates into a compound yearly growth rate (CAGR) of just a little under 3 percent.
Imagine if you'd managed to market at Novavax's summit on Oct. 11, 2001? Your 14 stocks would have been worth almost $4,066. That is a far more impressive yield, but it could have required perfect time -- something that no investor gets, at least not on a constant basis.
A wild ride
This year's enormous gains are not anything new for the inventory. Neither are enormous downswings.
NVAX Chart
Novavax has generated tantalizing progress throughout the years together with its evolution of medication, vaccine, and biomedical candidates. It won FDA approval in 2002 to get an estrogen replacement merchandise, Estrasorb, the firm licensed to King Pharmaceuticals.
However, in 2016, Novavax reported that the first of many clinical setbacks because of the RSV vaccine candidate.
On the other hand, the organization's nanoparticle flu vaccine NanoFlu had shown some promise by there. Novavax quickly improved the vaccine candidate during phase 1 and phase 2 research then transferred it into a critical phase 3 study in October 2019.
NanoFlu appears likely to become a significant participant in another chapter of Novavax's narrative. The business reported remarkable effects in March in the late-stage analysis of this investigational vaccine in treating older adults. Its next step will be to submit regulatory acceptance.
Before this month, the firm announced positive results in the phase 1 study of its own vaccine candidate, NVX‑CoV2373.
On the way, Novavax frees up financing obligations costing $2 billion because of its COVID-19 vaccine application.
Novavax could continue to be extremely volatile during the upcoming few months, as it has been around much of the previous 25 decades. But if NanoFlu and NVX‑CoV2373 acquire regulatory concessions, it appears likely that a $1,000 investment in Novavax now will pay off at a far greater way than has a comparable investment in the inventory when it went public.