One firm published positive data, while the other received a regulatory win
Shares of Novavax, Inc. (NASDAQ:NVAX) are trading up 1.6% at $1.64, after the company published positive early stage trial data for its NanoFlu treatment in the New England Journal of Medicine. Specifically, the flu vaccine showed significant improvement in immune responses of older adults with the influenza virus, compared to the more common egg-based vaccine.
Looking closer at the charts, NVAX stock has pulled back sharply since topping out at an annual high in early March. However, the equity's 200-day moving average has recently emerged as support -- a trendline that also cushioned a late-December retreat. Year-over-year, the security has added almost 52%.
On the sentiment front, analysts are mixed on the penny stock. While four brokerages maintain a "buy" or better rating, the other four covering NVAX sport a lukewarm "hold" or "sell" recommendation. However, the average 12-month price target of $3.93 represents expected upside of about 140% to the stock's current price.
Another drug stock making a big move today is Teligent Inc (NASDAQ:TLGT), which was last seen up 15.1% to trade at $3.76. Boosting the shares is news the Food and Drug Administration (FDA) gave marketing approval to the pharmaceutical firm's generic skin cream -- used to treat dermatological conditions like eczema -- marking the company's fifth FDA approval so far this year.
Today's bull gap has TLGT stock trading near the top end of its longer-term range, with the shares churning between $2.40 and $4.00 since an early November bear gap. The surge is likely to catch short sellers off guard, too. Short interest jumped 54% in the most recent reporting period to 11.35 million shares -- the most since November 2015. This represents almost 30% of the equity's available float, or 15.6 times the average daily pace of trading.