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Two days after the Food and Drug Administration’s advisors recommended approval for Novavax‘s (NVAX) Covid shot, the agency had yet to make a move, causing NVAX stock to topple Thursday.
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On Tuesday, the FDA’s Vaccines and Related Biological Products Advisory Committee voted 21-0, saying the benefits of Novavax’s two-dose vaccine outweigh the risks. One panelist abstained.
The matter is now before the full FDA. If authorized, the Centers for Disease Control and Prevention will have a chance to refine guidance around the vaccine.
But in the past, the FDA has authorized Covid vaccines for emergency use within a day — if not hours — of the advisory committee’s vote. Such was the case when Pfizer (PFE) and Moderna (MRNA) secured their authorizations in December 2020. Those were the first Covid vaccines, however. Novavax’s protein-based shot is a late contender.
In early trading on today’s stock market, NVAX stock skidded 3% near 48.60.
NVAX Stock: Different Vaccine Technologies
The Novavax vaccine differs from Pfizer’s and Moderna’s shots. It uses established technology to create a protein subunit vaccine. Specifically, it employs moth cells to create a protein and tree bark to help boost the immune response.
In contrast, the Pfizer and Moderna vaccines use newer messenger RNA-based technology. Their Covid shots were the first to launch using mRNA platforms. Some people are reluctant to receive vaccines using the newer technology, giving Novavax a market even in the saturated U.S.
During the FDA’s advisory committee meeting, Novavax Chief Medical Officer Filip Dubovsky referenced this population, saying “we haven’t given up on them.” About one-third of Americans are not fully vaccinated. That includes children under the age of 5 who are not eligible yet.
On Wednesday, CFRA Research analyst Stewart Glickman upgraded NVAX stock to a buy rating from hold. He also raised his price target to 71 from 14. He expects the vaccine to “fill a niche role for those who choose not to use an RNA-based vaccine.”
“While we see several challenges ahead for management on commercial execution, shares are down 67% year to date and are so beaten down, in our view, that even skeptical assumptions on revenue cadence still yield upside potential on these high-risk shares,” he said in a report.
As of Wednesday’s close, NVAX stock was down 65% for the year.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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