Novavax Inc. (NVAX) shares plummeted 5.04% during intraday trading on Monday, underperforming the broader market as vaccine stocks faced heavy selling pressure.
The decline followed a memo from the U.S. Food and Drug Administration (FDA) linking COVID-19 vaccinations to the deaths of at least 10 children due to heart inflammation. The FDA's top vaccine regulator, Dr. Vinay Prasad, announced plans to tighten approval standards for vaccines, including requiring larger clinical studies and stricter oversight. This regulatory shift has raised concerns about future vaccine sales and approvals for Novavax, which relies heavily on its COVID-19 vaccine for revenue.
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