The Covid-19 cases are piling up once more, fueling fears a full-blown resurgence of the pandemic is in the cards.
There are also worries that the already approved vaccines are less effective when confronted with mutant strains such as the Delta variant.
At the same time, CDC & FDA health officials have particularly stressed the importance of protection for immunocompromised people. Antibody response data for patients in categories such as cancer, hemodialysis, organ transplant and immunosuppressive therapies, has shown significantly lower rates of seroconversion following a two-dose regimen of mRNA vaccines.
That said, those shown to be seronegative following a 2nd dose, showed a far better rate of protection following a third dose – a 33 to 44% increase, in fact.
B. Riley’s Mayank Mamtani notes the “seroconversion rate, of course, needs to be balanced by the safety and reactogenicity profile associated with the additional dose.”
Although the amount of serious adverse reactions due to mRNA vaccines remains “low,” the current booster regime climate bodes well for the long-anticipated market entry of Novavax’s (NVAX) NVX-CoV2373 (NUVAXOVID).
The data in late-stage trials has shown the vaccine is just as effective and safe as the leading approved vaccines. With the EUA filing earmarked for Q3, and the vaccine currently in an EMA rolling review and being assessed by other regulators– in the U.K. and India, for example– Mamtani thinks there’s an opportunity for Novavax’ offering to still play a big part in the global fight against the pandemic.
As such, the 5-star analyst said, “We continue to believe widespread availability of NVAX’s NUVAXOVID to align nicely with the timeframe for broader utilization of boosters, which is anticipated to occur in parallel to continued urgency maintained with meaningfully increasing vaccination rates globally, possibly also driven by recognition that initially inoculated population with inferior vaccine types to be at higher risk of breakthrough infections due to variants of concerns (VOCs).”
To this end, Mamtani reiterated a Buy rating on NVAX shares, backed by a $286 price target. Investors could be pocketing gains of ~54%, should Mamtani’s thesis play out as expected. (To watch Mamtani’s track record, click here)
Turning now to the rest of the Street, where based on 4 Buys vs. 2 Holds, the stock boasts a Moderate Buy consensus rating. The average price target stands at $249.60, suggesting the shares’ value will increase ~35% in the year ahead. (See NVAX stock analysis 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.
