Novavax: BofA Securities downgrades to Neutral, PT cut to $9 from $10.
ByAinvest
Tuesday, Jul 22, 2025 12:31 pm ET1min read
MRNA--
In recent months, the FDA has implemented stricter guidelines for vaccine approvals, requiring efficacy data and a saline placebo in clinical trials. This shift has added complexity to the approval process for both traditional and mRNA-based vaccines. Novavax, which has a protein-based COVID-19 vaccine, has faced delays in obtaining full approval, with its Nuvaxovid vaccine initially approved under Emergency Use Authorization [1].
The company's flu-COVID combination vaccine, which uses Novavax's Matrix-M adjuvant, is currently on hold while the company seeks a development partner. Despite this setback, Novavax remains optimistic about its strategic partnerships and the potential for future growth. The company's CEO, Silvia Taylor, emphasized the importance of frequent communication with drug regulators to navigate the evolving regulatory environment [1].
Analysts have expressed varying opinions on Novavax's stock prospects. According to TipRanks, five analysts have given the stock a Hold rating, with an average price target of $10.20 for the next 12 months. While the consensus is neutral, there is a wide range of price targets, from a low of $6.00 to a high of $19.00 [2].
The regulatory uncertainty and development challenges faced by Novavax are not unique. Moderna, another company with an mRNA-based flu-COVID combination vaccine, has also encountered delays in obtaining efficacy data for the flu component. However, Moderna has since released Phase III results showing its vaccine beats current standards by 26.6% at preventing disease in adults aged 50 years or older [1].
In conclusion, Novavax faces a challenging regulatory environment and ongoing development hurdles for its flu-COVID combination vaccine. The BofA Securities downgrade reflects these uncertainties, but the company remains optimistic about its strategic partnerships and future growth prospects.
References:
[1] https://www.biospace.com/drug-development/after-moderna-pulled-its-shot-combination-flu-covid-vaccines-hang-in-limbo
[2] https://www.tipranks.com/stocks/nvax/forecast
NVAX--
Novavax: BofA Securities downgrades to Neutral, PT cut to $9 from $10.
BofA Securities has downgraded Novavax (NVAX) to Neutral, reducing its price target from $10 to $9. The move comes amidst a shifting regulatory landscape and ongoing development challenges for the company's flu-COVID combination vaccine. Analysts at BofA Securities cited uncertainties about the approval process for seasonal COVID-19 vaccines and the potential impact of Secretary Robert F. Kennedy Jr.'s views on vaccine technology as factors contributing to the downgrade [1].In recent months, the FDA has implemented stricter guidelines for vaccine approvals, requiring efficacy data and a saline placebo in clinical trials. This shift has added complexity to the approval process for both traditional and mRNA-based vaccines. Novavax, which has a protein-based COVID-19 vaccine, has faced delays in obtaining full approval, with its Nuvaxovid vaccine initially approved under Emergency Use Authorization [1].
The company's flu-COVID combination vaccine, which uses Novavax's Matrix-M adjuvant, is currently on hold while the company seeks a development partner. Despite this setback, Novavax remains optimistic about its strategic partnerships and the potential for future growth. The company's CEO, Silvia Taylor, emphasized the importance of frequent communication with drug regulators to navigate the evolving regulatory environment [1].
Analysts have expressed varying opinions on Novavax's stock prospects. According to TipRanks, five analysts have given the stock a Hold rating, with an average price target of $10.20 for the next 12 months. While the consensus is neutral, there is a wide range of price targets, from a low of $6.00 to a high of $19.00 [2].
The regulatory uncertainty and development challenges faced by Novavax are not unique. Moderna, another company with an mRNA-based flu-COVID combination vaccine, has also encountered delays in obtaining efficacy data for the flu component. However, Moderna has since released Phase III results showing its vaccine beats current standards by 26.6% at preventing disease in adults aged 50 years or older [1].
In conclusion, Novavax faces a challenging regulatory environment and ongoing development hurdles for its flu-COVID combination vaccine. The BofA Securities downgrade reflects these uncertainties, but the company remains optimistic about its strategic partnerships and future growth prospects.
References:
[1] https://www.biospace.com/drug-development/after-moderna-pulled-its-shot-combination-flu-covid-vaccines-hang-in-limbo
[2] https://www.tipranks.com/stocks/nvax/forecast
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet