BioTech

Positive News from Novavax, Inc. (NASDAQ:NVAX) Underwhelms Market

Novavax, Inc. (NASDAQ:NVAX)

Novavax, Inc. (NASDAQ:NVAX)

Novavax, Inc. (NASDAQ:NVAX) shares dropped over 27% after the company released news concerning their drug candidates that clearly underwhelmed the market. NVAX shares closed Monday at $1.51, then gapped down to open at $1.27 which was also its high for the day. After hitting a lot of $1.05, shares rebounded slightly to close at $1.10 on a volume about five times their average.

NASDAQ:NVAX
Daily Candle Graph $NVAX

Novavax, Inc. (NASDAQ:NVAX), based in Gaithersburg, MD, is a clinical-stage biotechnology company that develops vaccines to prevent a broad range of infectious diseases. Yesterday, Novavax, Inc. (NASDAQ:NVAX) announced topline data from its safety and immunogenicity Phase 2 trial of their RSV F Vaccine in older adults, new preclinical data on its RSV F Vaccine construct, additional findings from the prior Phase 2 and Phase 3 clinical trials in older adults (E201 and E301), and an operational update on the Phase 3 clinical trial of the RSV F Vaccine for infants via maternal immunization, known as Prepare. The data supports a positive view regarding the inclusion of adjuvant and the administration of a second dose.

Regardless of the positive news, the market clearly was disappointed. Last year Novavax, Inc. (NASDAQ:NVAX) had a reduction in force of almost a third of its employees and still posted a loss over $40 million for Q1 2017.  Expanding losses have been normal for Novavax, Inc. (NASDAQ:NVAX). In 2012 the company posted a small per share loss of (-$0.22) but that losss increased in each of the following years and in 2016 Novavax posted the loss at (-$1.03). On top of that, sales decreased from $36.3 million in 2015 to $5.4 million in 2016. Six investment firms follow Novavax, Inc. (NASDAQ:NVAX). Five rate NVAX shares as a “Hold” while only one rates the shares as a “Strong Buy”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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