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Novavax Finally Nabs Covid-19 Vaccine EUA; What’s Next?

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Finally, it’s done. After lengthy delays, on Wednesday, Novavax (NVAX) announced that the FDA had at long last provided the EUA (emergency use authorization) for its Covid-19 vaccine NVX-CoV-2373 - to be used as a two-dose vaccine for adults ages 18 and over.

The approved label is mostly in-line with the June VRBPAC panel’s opinions; the committee unanimously backed Novavax’s shot.

Since the pandemic’s onset, Novavax’ offering is the 4th to gain approval in the U.S. In contrast to the Pfizer and Moderna mRNA vaccines – the first ones to be approved – which are based on new technology, Novavax’ shot is based on the more traditional protein-based technology which has been in use for decades in hepatitis B and HPV vaccines. This could be appealing to those who have been wary of succumbing to the new tech. That said, the go-ahead comes at a time when almost 77% of the adult population is already vaccinated, although the White House has advocated for caution as it readies for new cases due to the spread of a variant that has demonstrated success at evading immunization.

Meanwhile, B. Riley analyst Mayank Mamtani expects the Advisory Committee on CDC’s Immunization Practices (ACIP) will be convened to “discuss the scope” of NVX-CoV-2373 utilization and adoption as early as July 19th.

“Importantly,” says the analyst, “this could be informative to 2H outlook supportive of $4B+ revenue guidance and help assuage investor concerns of 3Q delivery slowdown heading into the 2Q earnings release. In addition, the utilization of reduced-cost inventory, implying 3% COGS, through the majority of 2022 mitigates the risk of material choppiness to continued NT profitability.”

To this end, Mamtani rates NVAX shares a Buy along with a $181 price target. That figure makes room for 12-month growth of ~242%. (To watch Mamtani’s track record, click here)

Most agree with Mamtani’s stance; based on 7 Buys vs. 1 Hold and Sell, each, the stock claims a Moderate Buy consensus rating. The $126.5 average price target might not be quite as exuberant as Mamtani’s objective but is still anticipated to generate one-year returns of ~139%. (See Novavax stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.