Novavax, Inc. (NASDAQ:NVAX) investors are scratching their heads and trying to figure out whether this morning’s drop has created an attractive entry point.
Yesterday, Novavax announced topline data from its Phase 2 safety and immunogenicity trial of the 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.
Cantor analyst William Tanner commented, “Whether optimization of NVAX’s RSV vaccine was warranted prior to the Resolve trial is irrelevant at this point, in our view. Data released yesterday support the notion that inclusion of adjuvant and administration of a second dose improved the immune response compared with unadjuvanted vaccine administered only once. That the new formulations are safe may seem mundane, but we are mindful that safety issues could prevent ever having an opportunity to assess efficacy.”
Tanner continued, “Whether NVAX needs a partner to fully develop the vaccine in COPD remains to be determined. Management commented to us that the cost of an adequately sized Phase 2 trial would not be capital challenging for the company (we believe it could cost < $20 million). Establishing compelling proof of concept in COPD could allow the company to access capital to conduct registrational testing, and we believe development partnerships could also emerge with promising data.”
Overall, Tanner reiterates a Neutral rating on Novavax with a price target of $2.00, which implies an upside of 32% from current levels.
Out of the 8 analysts polled in the past 12 months, 7 rate Novavax stock a Hold, while 1 rates the stock a Buy. With a return potential of 126%, the stock’s consensus target price stands at $3.42.
