Biotechnology company Novavax, Inc. (NASDAQ: NVAX) recently revealed that its Nuvaxovid COVID-19 Vaccine for active immunization to prevent coronavirus has been authorized for use in Canada.
However, following the news, shares of the company declined almost 3.6% on Thursday. The stock pared its losses slightly to close at $83.53 in the extended trading session.
Details of the Approval
The Nuvaxovid COVID-19, also known as NVX-CoV2373, is a protein-based vaccine created by using Novavax’s recombinant nanoparticle technology to enhance the immune response and stimulate high levels of neutralizing antibodies.
The vaccine received approval after two critical Phase 3 clinical trials, involving 30,000 participants aged 18 years and older in the U.S. and Mexico and 15,000 adult participants in the U.K. Common side effects observed among the participants were headache, nausea or vomiting, myalgia, arthralgia, injection site tenderness/pain, fatigue, and malaise.
In January 2021, Novavax and the Government of Canada signed an advance purchase agreement for 52 million doses of Novavax’s COVID-19 vaccine, with the option for up to an additional 24 million doses.
Management Commentary
The CEO of Novavax, Stanley C. Erck, said, “We are proud that Canada is part of the growing list of regions to authorize Nuvaxovid and that Canadians will have a protein-based COVID-19 vaccine option. We thank the Canadian government and the National Research Council of Canada for their ongoing partnership and commitment to helping combat the evolving pandemic.”
Stock Rating
Recently, Cantor Fitzgerald analyst Charles Duncan reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $282 to $174, which implies upside potential of 108.5% from current levels.
According to the analyst, waning concerns about booster shots for Covid-19 and the high rate of vaccinations remain headwinds for the company.
Consensus among analysts is a Strong Buy based on 5 Buys and 1 Hold. The average Novavax stock prediction of $232 implies upside potential of 178% from current levels. Shares have declined 68.6% over the past year.
Positive Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on NVAX, as 1% of portfolios tracked by TipRanks increased their exposure to NVAX stock over the past 30 days.
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