Novavax Stock Offers ‘Another Attractive Entry Point,’ Says Analyst

 Novavax Stock Offers ‘Another Attractive Entry Point,’ Says Analyst

Well folks, it finally happened. After a series of delays which culminated in a recent Politico article saying Novavax (NVAX) was unable to get its Covid-19 vaccine (NVX-CoV2373) manufacturing up to the standard required for filing with the regulators, the company at last submitted its EUA filing to the UK MHRA (Medicines and Healthcare products Regulatory Agency).

“Importantly,” said B. Riley analyst Mayank Mamtani, “The filing with MHRA includes all modules required for regulatory review, including CMC data from manufacturing partner, the Serum Institute of India.” This suggests whatever manufacturing issues the company encountered have now been resolved.

While questions have been raised whether Novavax has missed the boat with Covid once again on the backfoot, the UK has actually seen a new wave of rising cases with the emergence of the ‘delta plus’ variant. This suggests the pandemic is still an ongoing concern across the pond. As such, Mamtani believes NVX-CoV2373 “could serve as 2nd shot in mix-and-match and 3rd shot in the heterologous boost settings.”

There should be other regulatory filings ahead too, including in the EU, Canada, and Australia, for which Mamtani expects the application package will include the same dataset. An application for an EUA from the the FDA should also take place before the end of the year. The review process for other approved vaccines has taken between two weeks and a month, the analyst noted.

As the FDA authorized Moderna’s and JNJ’s COVID-19 booster shots with limited data, including the ability to mix-and-match boosters “within a matter of days,” Mamtani thinks this “paradigm sets a low bar” for Novavax to enter the booster market. What’s more, FDA’s latest statements suggest the EUA door “remains open” for Novavax’ offering.

With upcoming catalysts including the first wave of regulatory approvals, FDA submission and the delivery of 100 million doses, Mamtani thinks the shares’ recent pullback provides “another attractive entry point.”

Accordingly, the analyst reiterated a Buy rating on NVAX, backed by a $305 price target. There’s upside of a hefty 105% from current levels. (To watch Mamtani’s track record, click here)

The Street’s average target is only slightly less bullish; at $290.33, the figure implies shares will gain 105% of muscle over the next 12 months. With 2 extra Buy ratings thrown into the pot, the stock qualifies with a Strong Buy consensus rating. (See NVAX stock analysis)

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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.

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