Novavax's stock plummeted 5.04% during intraday trading on Thursday, as investors reacted to regulatory uncertainty surrounding the composition of COVID-19 vaccines for the upcoming season.
The U.S. FDA's advisory panel is meeting to vote on whether COVID-19 vaccines for the 2026-2027 immunization campaign should target the dominant XFG variant, with staff members raising concerns about limited data on currently circulating strains. This regulatory uncertainty comes at a time when vaccine regulation has been described as being in a "state of limbo" following court interventions.
Novavax, whose protein-based COVID shot takes longer to manufacture compared to mRNA alternatives, faces particular challenges in this uncertain environment. While partner Sanofi has indicated it is manufacturing XFG-targeting Nuvaxovid vaccine as its single global COVID-19 product for the 2026-27 season, the FDA's final decision and timing could significantly impact Novavax's production planning and market position.
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