Novavax's stock surged 12.54% intraday on Tuesday as investors reacted to regulatory developments regarding COVID-19 vaccine formulations.

The U.S. Food and Drug Administration's advisory committee is set to discuss whether COVID-19 vaccines should be updated to target the latest circulating XFG subvariant for the 2026-27 immunization campaign. Novavax is one of three COVID shot manufacturers authorized in the U.S., alongside Moderna and Pfizer-BioNTech.

The company's protein-based vaccine, which was licensed to Sanofi in a deal worth at least $1.2 billion in 2024, could see increased demand if the FDA recommends targeting the XFG variant. Vaccine manufacturers have indicated they are prepared to produce an XFG vaccine for the upcoming vaccination season.