Shares of Novavax Inc. (NVAX) surged 11.89% on Tuesday, amid growing concerns around a potential bird flu outbreak. The biopharmaceutical company's stock rallied during intraday trading as investors bet on increased demand for vaccines targeting the H5N1 influenza virus strain.

The spike in Novavax's share price comes as the U.S. reported its first human death from bird flu in Louisiana. With the virus posing a public health risk, vaccine makers like Novavax and Moderna are expected to benefit from heightened efforts to develop and produce effective vaccines.

Notably, the U.S. government awarded Moderna $176 million in July to complete late-stage development and testing of an mRNA-based bird flu vaccine. As worries over the outbreak escalate, investors are anticipating a potential boost for Novavax's vaccine pipeline and overall prospects in the near future.