Shares of Novavax Inc (NASDAQ: NVAX) dropped significantly on Thursday after analysts at JPMorgan cut their rating and price target on the drugmaker in response to the company’s decision to reduce its projections for sales soon.
Novavax Inc Stock Rating
As a result of lackluster demand for near-term Covid vaccines, an analyst at JPMorgan named Eric Joseph lowered his rating on the stock to ‘underweight’ from ‘neutral’ and reduced his price objective for the stock by more than $100, bringing it down to $27 per share.
Following a worse-than-expected loss of $6.53 per share in the third quarter, Novavax reduced its revenue forecast for the whole year and issued a warning that it does not expect to sell more Covid vaccines in the United States this year. This comes after the company posted a loss in the third quarter that was larger than expected.
Joseph, the analyst responsible for the downgrade, stated in his note that “despite the weak second-quarter report and downward revenue guide revision, our assessment of the recent vaccination dynamic in both the EU and the U.S. would imply further guidance cuts are in the offing.” “While simultaneously indicating that meaningful Nuvaxovid uptake will face obstacles in the medium and longer terms.”
On Thursday, shares of Novavax Inc. (NASDAQ: NVAX) were marked 13.3% down to change hands at $22.44 per. This move will increase the stock’s year-to-date drop to around 84.3% if it continues.
Novavax Inc. (NASDAQ: NVAX) has reduced its sales forecast for 2022 to between $2 billion and $2.3 billion, citing the late entry of its Covid vaccine to a glutted domestic market. The company stated it does not anticipate receiving a new order this year from the World Health Organization-backed COVAX facility, as government buyers work through supply purchased earlier in the year.
Early in June, the Food and Drug Administration of the United States recommended granting Emergency Use Authorization for the group’s Covid vaccine, also known as NVX-CoV2373, to patients over eighteen. This authorization would be in addition to the permissions that had previously been granted to Pfizer (PFE), Johnson & Johnson (JNJ), and Moderna (MRNA).
According to Pfizer’s projections, total sales of the company’s Comirnaty vaccine and Paxlovid oral medication should amount to approximately $54 billion in 2017.
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