Mayank Mamtani, an analyst from B.Riley Financial, reiterated the Buy rating on Novavax (NVAX – Research Report). The associated price target is $15.00.
Mayank Mamtani has given his Buy rating due to a combination of factors. The primary reason being the recent decision by the FDA to amend the emergency use authorization (EUA) for Novavax’s Matrix-M COVID-19 vaccine, which now includes the 2023-2024 formula. This updated vaccine covers the latest SARS-CoV-2 Omicron variant and can be administered to individuals above 12 years and the immunocompromised, regardless of their previous COVID-19 vaccination status. The absence of notable restrictions and its timely authorization, aligning with the late 3Q estimated timeline, is seen as a positive development. This puts the Novavax vaccine at par with other mRNA vaccines like MRNA’s SpikeVax and PFE’s Comirnaty Omicron for “universal 2023-24” use.
Further, the readiness of Novavax to distribute millions of commercial-ready doses, already manufactured and on standby, is another contributing factor to the Buy rating. The availability of these vaccines at numerous locations within days, including retail pharmacies and physicians’ offices, makes it a viable option for many. As the bearish perception of overall COVID-19 vaccine demand seems set to improve, especially for 4Q, this puts Novavax in a strong position. Additionally, the introduction of a non-mRNA protein-based alternative, coupled with a growing awareness among the general population about the need for protection, is likely to stimulate wider adoption. Lastly, the company’s internal market research, showing that 30% of participants prefer a non-mRNA option, further strengthens the case for Novavax’s vaccine.
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Novavax (NVAX) Company Description:
Novavax, Inc. is a late-stage biotechnology company, which focuses on the discovery, development and commercialization of vaccines to prevent infectious diseases. It produces vaccine candidates to respond to both known and emerging disease threats by using the proprietary recombinant nanoparticle vaccine technology. Its vaccine candidates include ResVax and NanoFlu. It also develops immune stimulating saponin-based adjuvants through its wholly owned Swedish subsidiary, Novavax AB. The company was founded in 1987 and is headquartered in Gaithersburg, MD.
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