Novavax Delays COVID-19 Vaccine Deliveries — Report

Biotechnology company Novavax, Inc. (NASDAQ: NVAX) has delivered only a small portion of COVID-19 vaccine doses compared to its plan to provide the world with 2 billion doses this year, Reuters said citing government officials.

The company has also delayed shipments to Europe and lower-income nations like the Philippines in the first quarter. It said that it delivered nearly 10 million doses to Indonesia and several million doses to Australia and New Zealand this quarter.

Novavax’s spokesperson Amy Speak said, “Some shipments have been held up by regulatory processes and are waiting in a distribution warehouse to go to healthcare providers.”

Meanwhile, the Maryland-based company expects to ship nearly 80 million doses of the vaccine to COVAX in the current quarter. Novavax has a contract to deliver 1.1 billion doses to COVAX, business data and analytics firm GlobalData said.

According to data from Refinitiv, the company expects COVID-19 vaccine sales of around $5 billion this year.

About Novavax

Novavax is focused on the discovery, development, production and sale of vaccines to prevent infectious diseases. It produces vaccines by using the proprietary recombinant nanoparticle vaccine technology.

Shares of NVAX plunged 12% on Tuesday to close at $83.45.

Wall Street’s Take

On February 8, B. Riley Financial analyst Mayank Mamtani maintained a Buy rating on the stock with a price target of $315 (277.5% upside potential).

Commenting on the delay in shipments, the analyst said, “It’s concerning when they (Novavax) have been saying they have been ready to ship millions of doses but the numbers you’re hearing are different.”

Overall, the stock has a Strong Buy consensus rating based on 4 Buys and 1 Hold. The average Novavax price target of $243.60 implies 192% upside potential. Shares have lost 55.7% over the past six months.

Blogger Opinions

TipRanks data shows that financial blogger opinions are 73% Bullish on Novavax, compared to the sector average of 70%.

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