Novavax (NASDAQ:NVAX) and other vaccine makers are dropping in anticipation of an advisory panel meeting of the U.S. Food and Drug Administration (FDA) regarding booster shots. This is a panel meeting of outside experts. The topic? To whom and when should a second round of covid-19 booster shots be administered to.
The FDA already authorized another round of boosters for people 50 and older, and those with certain immunocompromising conditions. Vaccine makers are hoping that the FDA would further expand this recommendation.
Out of the vaccine manufacturers, this news in my view, would most impact NVAX stock. The company is late to the party and has not yet received FDA approval for its vaccine. Named NVX-CoV2373, the company’s protein-based shot is still undergoing Emergency Use Authorization (EUA) in the U.S. This is on the heels of numerous delays.
Time is of the essence for Novavax. Other vaccine manufacturers have successfully deployed their vaccines and are reaping great profits. Soon the market for COVID-19 vaccines will shrink to almost nothing once everyone who wanted a shot has already gotten one.
In late March, Novavax scored a couple of huge wins. The company submitted a request to the European Union to allow its vaccine to be used on young people aged 12-17. Its vaccine has also recently become available in Canada. With the continued delay in U.S. approval, Novavax is pinning its hope on the rest of the world. Its vaccines are now available in Europe, Australia, Indonesia and South Korea.
The company is looking to reach revenues of $4 billion to $5 billion. Only time will tell whether it can hit that amount – especially since the US market remains closed to them. NVAX stock dropped over 12% on Tuesday and continues to be on a downtrend. It broke its support base of $67 and is now at an all-time low for the year of $57.67 and dropping. It’s hard to see this support holding given the continued delay. I would watch NVAX from the sidelines for now.
On the date of publication, Joseph Nograles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.