Novavax's stock fell sharply by 5.04% during intraday trading on Monday, following a broader decline in vaccine-related stocks.
The drop came after a memo from the FDA's Dr. Vinay Prasad linked COVID-19 vaccines to the deaths of at least 10 children, citing heart inflammation as a probable cause. The memo also announced plans to tighten vaccine approval standards, raising concerns about future regulatory hurdles for Novavax and other vaccine makers.
Investors reacted negatively to the news, fearing that stricter regulations could limit vaccine sales and increase development costs. The FDA's stance, coupled with Health Secretary Robert F. Kennedy Jr.'s skepticism toward mRNA vaccines, has added uncertainty to the sector.
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