Why Novavax Stock Sank to a New 52-Week Low

The vaccine maker's recent regulatory victories aren't landing with investors.

What happened

Shares of beaten-down biotech $Novavax(NVAX)$ are under pressure yet again. The vaccine developer's shares were down by 3.3% on average trading volume as of 12:30 p.m. ET Tuesday.

For the year, Novavax's stock has now lost a staggering 79% of its value, and on Tuesday, it hit a fresh 52-week low. The stock has been locked in a downward spiral over concerns that its COVID-19 vaccine Nuvaxovid may fail to live up to expectations from a commercial standpoint.

So what

Unfortunately, these concerns appear to be reasonable. The long and short of it is that Nuvaxovid has consistently lagged behind Moderna's Spikevax and Pfizer/BioNTech's Comirnaty on the regulatory front. And the public's concern about COVID-19 seems to be firmly in retreat, which is likely to lower the demand for these vaccines.

As a result of these dual headwinds, Novavax slashed its 2022 revenue guidancein halfwhen it reported its second-quarter results last month. So, despite a series of recent regulatory victories for its coronavirus vaccine, the company's near-term outlook doesn't exactly inspire confidence.

Now what

Should bargain hunters take advantage of this prolonged sell-off in Novavax's stock? Wall Street certainly thinks so. Despite the company's markedly lower commercial outlook for Nuvaxovid, the consensus among analysts following the biotech stock is that it could appreciate by a staggering 318% over the next 12 months.

That rosy outlook seems to be based on the assumption that the market is badly misjudging the commercial potential of the company's protein-based COVID-19 inoculation. Nonetheless, investors may still want to wait for the next batch of Nuvaxovid sales data before picking up shares of this struggling healthcare company.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • Damien Khoo
    ·2022-09-10
    One of my worst counters.
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  • luckyone
    ·2022-09-08
    good time to buy?...
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  • Kucing
    ·2022-09-08
    vaccine trend is over
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  • JYinvest
    ·2022-09-07
    Thanks for sharing
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  • TINYARK
    ·2022-09-11
    [Thinking]
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  • puipuimaya
    ·2022-09-10
    yalor, y?
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  • TcsTcs
    ·2022-09-09
    thanks
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  • Vincent1968
    ·2022-09-08
    pathetic
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  • KeN3
    ·2022-09-08
    Badly burnt
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  • greenpepper
    ·2022-09-08

    Ok

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  • AwesomeYan
    ·2022-09-08
    thanks
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  • JohnsonYeo
    ·2022-09-07
    oh
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  • AlanTiger
    ·2022-09-07
    K
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  • Ken7979
    ·2022-09-10
    terrible
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  • MicSng
    ·2022-09-07
    👍
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