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BofA Explains Why Novavax Stock is Trading Lower Despite Positive VRBPAC

Stock Markets Jun 15, 2022 09:36AM ET
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© Reuters BofA Explains Why Novavax (NVAX) Stock is Trading Lower Despite Positive VRBPAC

By Senad Karaahmetovic

Shares of Novavax (NASDAQ:NVAX) are trading at 2-year lows after falling about 30% since the beginning of June.

The move lower comes despite a positive 21-0 expert recommendation vote in favor of Nuvaxovid EUA approval.

Bank of America analyst Alec W. Stranahan has reflected on Novavax stock and recent underperformance. He believes investors are disappointed about Nuvaxovid’s data that showed none of the variants identified in the study are currently considered variants of concern.

“The lack of omicron data (98.8% of US tested strains) leaves an unaddressed question mark that is in our view contributing to NVAX shares weakness (not to mention new omicron strains ba.1, ba.2 etc.). Although management remains confident on Nuvaxovid’s capabilities of addressing severe diseases in variants of concerns, we await omicron study results in 3Q to demonstrate continued effectiveness of Nuvaxovid,” Stranahan told clients in a note.

Overall, Stranahan says “it is less and less likely” that Nuvaxovid will be seen as a “blockbuster treatment” in the US, although there are opportunities globally.

“The majority of the market capture will predominantly be in the form of future boosters, which we consider to be difficult given 1) booster demand could sharply decline if reduced production is shown, 2) little evidence so far to make a case for Nuvaxovid as a superior heterologous option,” he added.

Bank of America rates Novavax stock as Underperform with a $35.00 per share price target.

Novavax stock is down a further 1.5% Wednesday.

BofA Explains Why Novavax Stock is Trading Lower Despite Positive VRBPAC
 

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Comments (2)
surinder kumar
surinder kumar Jun 16, 2022 10:30AM ET
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Nothing wrong with Novavax,it's corrupt FDA working for Pfizer,FDA took 6month to review Novavax,Pfizer and Moderna got cleared in one month,WHO/UK/EU/Japan has approved it,If FDA is far superior than them,Approval of Novavax mean cuts on Pfizer profits,cuts on Pfizer profits mean less commission will go to FDA,Anymore explanation needed please feel free to contact me,FDA the most corrupt department on planet,worse than third world,12%32% effective Pfizer has been approved by FDA for our kids can cause heart inflation,if You guys still need more clarification,fda is bunch of corrupt idiot,have no more faith.
Bharat Bhatia
Bharat Bhatia Jun 15, 2022 11:38PM ET
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I think they said 3 doses worked on omicron, an additional dose was needed. the data needs to be looked and interpreted objectively.
 
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