Wednesday, H.C. Wainwright reiterated a Buy rating and a $19.00 price target on Novavax (NASDAQ: NASDAQ:NVAX), following the company's announcement on December 10 about the initiation of a Phase 3 trial for its COVID-19-Influenza Combination (CIC) vaccine and stand-alone seasonal influenza vaccine. The company, currently valued at $1.4 billion, has seen its stock surge over 80% year-to-date despite significant volatility.
According to InvestingPro data, analyst targets for the stock range from $9 to $25, reflecting mixed sentiment in the market. The trial aims to assess the immunogenicity and safety of these vaccines in adults aged 65 and older.
Novavax has begun dosing participants, with plans to recruit an initial cohort of approximately 2,000 individuals. The company is conducting the clinical trials at risk while seeking to align with the FDA on accelerated approval criteria. Novavax is working with the agency to determine if the current trial could support accelerated approval for these vaccine candidates.
The firm is optimistic about the potential of the randomized Phase 3 trial, which builds upon positive Phase 2 results. While InvestingPro analysis indicates that Novavax's revenue declined by about 16% in the last twelve months to $885 million, the company maintains a solid balance sheet with more cash than debt. InvestingPro subscribers have access to 8 additional key insights about Novavax's financial health and market position.
The study is designed to showcase the immunogenicity and safety of combining Novavax's updated 2024-2025 COVID-19 vaccine with its trivalent nanoparticle seasonal influenza vaccine candidate and Matrix-M adjuvant, as opposed to separate administrations of the COVID-19 vaccine and a licensed seasonal influenza vaccine.
In addition to the combination vaccine, the trial will also evaluate Novavax's stand-alone seasonal influenza vaccine, which includes the Matrix-M adjuvant. Novavax expects to provide further details and clarity on the potential next steps by the second quarter of 2025, which may include additional clinical work necessary for the registration of these vaccines.
The firm's positive outlook on Novavax is based on the company's ability to meet its long-term operational goals and the promising data from earlier trial phases. This endorsement reaffirms the Buy rating and the $19 price target for Novavax shares. Based on InvestingPro Fair Value analysis, the stock currently appears undervalued.
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In other recent news, Novavax has initiated a Phase 3 clinical trial for its COVID-19-Influenza Combination (CIC) vaccine and a stand-alone seasonal influenza vaccine, following positive Phase 2 data. The company has also sold its Czech facility to Danish pharmaceutical company Novo Nordisk (NYSE:NVO) for $200 million, a strategic move to streamline operations and focus on vaccine development.
Analysts from B.Riley and H.C. Wainwright have updated their outlook on Novavax, with B.Riley reducing its price target but maintaining a Buy rating, and H.C. Wainwright maintaining a Buy rating and a $19.00 stock price target. In its third-quarter earnings report, Novavax revealed a decrease in revenues to $85 million, down from $187 million in the same quarter of the previous year. Despite this, the company remains optimistic about future growth, especially with the European Commission's marketing authorization for its updated vaccine.
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