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Novavax Stock Hits 2-Year Low As Challenges Mount For Covid Shot

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Novavax inventory is buying and selling at a two-year low amid slowly ramping use of its Covid vaccine, dubbed Nuvaxovid, within the U.S.




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The Food and Drug Administration signed off on Nuvaxovid in July, six months after Novavax (NVAX) requested the company to authorize the routine for emergency use. Since then, simply 6,278 folks have acquired two doses of the vaccine, in keeping with the Centers for Disease Control and Prevention.

In whole, Novavax has delivered roughly 31.2 million doses of the shot within the U.S.

CFRA Research analyst Stewart Glickman beforehand famous provide and timing challenges for Novavax. An necessary element of the vaccine comes from the bark of a tree discovered generally in Chile. Harvesting these bushes is extremely regulated.

“Novavax partly chalked up the second-quarter revenue miss to timing issues, with sales leaking into the third quarter,” he mentioned in an August word to purchasers. “But we think the company is in the penalty box and we would now characterize the investment thesis as a ‘show me’ story.”

Novavax Stock: A Limited Launch

Novavax was already at an obstacle on the time of its U.S. launch of Nuvaxovid. Pfizer (PFE) and Moderna (MRNA) received their first authorizations in December 2020. Novavax inventory ran up with the duo by February 2021.

The CDC additionally guided to a limited U.S. launch of Nuvaxovid. Not all suppliers acquired the routine and preordering wasn’t obtainable for the shot. The U.S. doses had been to be “directed to providers with expected demand among unvaccinated patients.”

In the U.S., that features about 10% of adults.

Nuvaxovid use charges are positive to be larger overseas. The shot received its first authorizations final November in Indonesia and the Philippines.

Light Sales Expectations

Still, CFRA’s Glickman does not have excessive hopes for 2022-23 gross sales — and that is mirrored within the efficiency of Novavax inventory. After lacking second-quarter expectations, shares have usually trended down, in keeping with MarketSmith.com.

Glickman now expects $1.8 billion in 2022 gross sales and $2.2 billion subsequent yr. Following its miss, Novavax minimize its full-year steering to $2 billion to $2.3 billion in gross sales.

In morning trades on today’s stock market, Novavax inventory tumbled 8.9% close to 23.60.

Representatives of the corporate did not instantly return a request for remark.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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