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Novavax’ Covid-19 Vaccine Could Be the Solution to Emerging Variants
Corona

Novavax’ Covid-19 Vaccine Could Be the Solution to Emerging Variants

The Covid-19 vaccine landscape is under a cloud of uncertainty, especially when factoring in the booster regimes meant to halt the spread of the Delta variant. At least this is the opinion of B. Riley analyst Mayank Mamtani.

The 5-star analyst believes there isn’t enough evidence to support the rationale of the Biden administration’s plan to offer booster shots to all Americans. The program is meant to begin on September 20, with booster vaccines administered 5-8 months following the primary vaccine series.

There are “several real-world studies,” says Mamtani, including from the Israel Ministry of Health and the Mayo Clinic which “point to the trend of waning vaccine efficacy (VE), including against hospitalization and death.” For example, according to the Israel Ministry of Health, for those vaccinated with Pfizer/BioNTech’s vaccine in Jan-Feb 2021, the vaccine’s efficacy rate by July had dropped to 42% against infection and 75% against hospitalization, factors which coincided with the spread of the Delta variant in Israel.

“This explains the rapid increase of daily cases in the U.S,” says Mamtani. Add in the roughly 30% of those yet to get vaccinated and it is easy to understand the “change of posture from the FDA to accelerate plans for boosters’ availability to the broader population.”

But Mamtani’s take appears to be that it is not known whether boosters will be able to fight back against new variants. An even more troublesome variant could emerge, he says, which also “accelerates the need for a multi-variant vaccine.”

This is where Novavax’ (NVAX) Covid-19 vaccine candidate NVX-CoV2373 enters the frame. While the vaccine’s late-stage data has been overwhelmingly positive and has matched the safety and efficacy rates achieved by the approved vaccines, its EUA filing has been pushed back repeatedly and is now anticipated in Q4. However, Mamtani still believes an EUA remains “viable.”

“Taken together,” the analyst said, “We remain encouraged by the role NVAX has to play in driving increased penetration among the unvaccinated segments within the U.S. and globally, given the NVX-CoV2373 safety advantage relative to mRNAs, as well as an adjuvanted subunit protein platform that allows for rapid generation of multi-valent vaccines, as already demonstrated by success noted with late-stage development of NanoFlu, also guiding company’s industry-leading efforts for developing a COVID-Flu combination candidate.”

All in all, Mamtani reiterated a Buy rating on NVAX shares, backed by a $305 price target. Shares could appreciate by 21%, should the analyst’s thesis play out in the coming months. (To watch Mamtani’s track record, click here)

Over the past 3 months, 3 other analysts have assessed NVAX’ prospects and have reached the same conclusion – Buy. Therefore, the stock has a Strong Buy consensus rating backed by a $276.5 average price target. The implication for investors? Upside of ~10%. (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.

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