TLDR:
- Novavax stock jumped 19.2% to $14.68 in recent trading
- FDA authorized updated COVID-19 vaccine for ages 12+ targeting JN.1 strain
- Novavax is transitioning to an R&D model with potential partnership in 2025
- Company expects to meet revenue guidance for 2024/2025 vaccine season
- Jefferies maintains Buy rating on Novavax with $31 price target
Novavax, a biotechnology company focused on vaccine development, has experienced a significant uptick in its stock price. The company’s shares rose 19.2% to close at $14.68 in recent trading. This increase comes after several positive developments for the vaccine maker.
The U.S. Food and Drug Administration (FDA) recently granted emergency use authorization for an updated version of Novavax’s protein-based COVID-19 vaccine.
This new vaccine targets the JN.1 strain of the virus and is approved for individuals aged 12 years and older. The authorization makes Novavax’s product the only non-mRNA vaccine option available in the United States for this age group.
Novavax is expecting to meet its revenue guidance for the 2024/2025 vaccine season. The company anticipates that the majority of sales for this period will occur in the fourth quarter. This outlook suggests stability in the company’s financial performance despite the evolving landscape of COVID-19 vaccination efforts.
In a strategic shift, Novavax is transitioning to a research and development (R&D) focused model. The company is currently conducting a Phase 3 trial for a combination flu and COVID-19 vaccine.
This project could lead to a major partnership in 2025, potentially opening new avenues for growth and collaboration within the pharmaceutical industry.
Novavax is also exploring new non-seasonal vaccines based on its unique adjuvant technology. Adjuvants are substances added to vaccines to boost the immune response. This focus on innovative vaccine technologies could drive significant future growth for the company.
Financial analysts at Jefferies have expressed optimism about Novavax’s prospects. They maintain a “Buy” rating on the stock with a price target of $31. This target represents potential upside from the current trading price.
The company’s financial health has improved following a deal with pharmaceutical giant Sanofi. This agreement is expected to provide upfront payments and potential future earnings, supporting Novavax’s ongoing strategic transformation.
Looking ahead, Novavax faces both opportunities and challenges. The company is expected to post a quarterly loss of $0.91 per share in its upcoming financial report.
While this represents a 27.8% improvement from the previous year, it still indicates that the company is operating at a loss. Additionally, revenues are projected to be $52.32 million, a 72% decrease from the year-ago quarter.
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