Novavax, Inc. (NASDAQ: NVAX) popped 31
percent Wednesday evening after management announced
the NanoFlu Vaccine demonstrated improved immune responses over alternative flu
vaccines.
Biotech experts disputed the data’s significance, with STAT News' Adam Feuerstein confessing skepticism.
Meanwhile, Chardan analyst Keay Nakae asserted that NanoFlu compared favorably to Sanofi SA (ADR) (NYSE:
SNY)’s Fluzone HD in immunogenicity.
NanoFlu was found to significantly boost hemagglutination inhibition antibody (HAI) responses against H1N1, H3N2 and B/Brisbane
strains, leading to a 47-percent rate improvement; significantly boost HAI immune responses against historic and forward-drifted
H3N2 strains, with respective improvements of 64 percent and 54 percent improvement; and demonstrate strong neutralizing antibody
responses against three H3N2 strains.
A Risk-Weighted Thesis
Despite his optimistic read on the Phase 1/2 trial data, Nakae maintained a Neutral rating on the stock and predicted 46-percent
downside.
The analyst justified his bearishness considering Novavax’s expected incurrence of near-term operating losses, potential need to
raise capital, unproven pipeline, significant competition and uncertain protection of intellectual property.
“The Company has a history of losses, and may never become and remain consistently profitable,” Nakae wrote in a Thursday note.
“...The Company’s product candidates are unproven and may never lead to a marketable product.”
What’s Next
Novavax expects to launch a Phase 2 trial in the third quarter.
At time of publication, shares were trading up 27 percent at $2.76.
Related Links:
More
Bad News For Novavax: A Citi Downgrade
Novavax
Analyst Turns Uber-Bullish, Raises Price Target To $10
Latest Ratings for NVAX
Date |
Firm |
Action |
From |
To |
Feb 2018 |
Citigroup |
Maintains |
Neutral |
Neutral |
Jan 2018 |
B. Riley |
Maintains |
Buy |
Buy |
Jan 2018 |
B. Riley |
Initiates Coverage On |
|
Buy |
View More Analyst Ratings for
NVAX
View the Latest Analyst Ratings
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.