Novavax (NVAX) stock is soaring 5.14% in intraday trading following news that its COVID-19 vaccine, Nuvaxovid®, has received regulatory approval in Japan. This development has triggered a milestone payment from Japanese pharmaceutical company Takeda, boosting investor confidence in the vaccine maker.

The approval in Japan covers the use of Nuvaxovid® as an initial immunization for individuals aged six years and older, as well as a booster for those aged 12 and above. This expansion of Novavax's market reach is significant, as it provides a protein-based, non-mRNA vaccine option in the Japanese market, targeting the SARS-CoV-2 Omicron LP.8.1 variant.

While the specific amounts of the milestone payment and potential royalties remain confidential due to contractual agreements, Novavax has confirmed that it is eligible to receive royalties on net sales of Nuvaxovid from Takeda this vaccination season. Additionally, a portion of the milestone payment can be credited towards future royalty payments, potentially providing Novavax with a steady stream of revenue. This financial boost, coupled with the expanded market presence, appears to be driving the positive sentiment among investors, resulting in the significant stock price increase.