Novavax shares trade at two-year low amid slow US use of its Covid vaccine, called Nuvaxovid
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The Food and Drug Administration signed off on Nuvaxovid in July, six months later Novavax (NVAX) asked the agency to authorize the regimen for emergency use. Since then, only 6,278 people have received two doses of the vaccine, according to the Centers for Disease Control and Prevention.
In total, Novavax has delivered approximately 31.2 million doses of the vaccine in the US
CFRA Research analyst Stewart Glickman previously noted supply and timing challenges for Novavax. An important component of the vaccine comes from the bark of a tree commonly found in Chile. The harvesting of these trees is highly regulated.
“Novavax attributed the second-quarter revenue loss in part to timing issues, with sales leaking into the third quarter,” it said in an August note to clients. “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 release
Novavax was already at a disadvantage at the time of Nuvaxovid’s launch in the United States. Pfizer (PFE) and modern (MRNA) won its first approvals in December 2020. Novavax shares rose with the duo through February 2021.
The CDC also guided for a limited U.S. release of Nuvaxovid. Not all providers received the regimen, and pre-ordering was not available for the vaccine. US doses were to be “directed to providers with expected demand among unvaccinated patients.”
In the US, this includes about 10% of adults.
Rates of Nuvaxovid use are sure to be higher overseas. The shot won its first clearances last November in Indonesia and the Philippines.
Light sales expectations
Still, CFRA’s Glickman doesn’t have high hopes for 2022-23 sales, and that’s reflected in Novavax’s stock performance. After missing expectations for the second quarter, stocks are generally lower, according to MarketSmith.com.
Glickman now expects $1.8 billion in sales by 2022 and $2.2 billion next year. After its mistake, Novavax cut its full-year guidance to $2 billion to $2.3 billion in sales.
In afternoon trading today, shares of Novavax fell 14.7% to close at 22.10.
Company representatives did not immediately return a request for comment.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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