Drug maker Novavax’s (NASDAQ:NVAX) updated COVID-19 vaccine shots are undergoing the European Union’s scrutiny for potency across the board. As per a Financial Times report, the European Medicines Agency (EMA), which was set to approve the vaccine on October 13, has delayed the approval of the latest vaccine. The authority has requested more information for review and will take up to four weeks to release its final decision on the new vaccine that targets the XBB variant.
NVAX’s latest version of the COVID shot is protein-based, as opposed to the earlier mRNA-based vaccine. The biotech company has worked closely with the EMA to develop the new vaccine. Since this is the first-of-its-kind non-mRNA vaccine, the EMA wants to ensure the vaccine’s effectiveness and also establish that the vaccine has the same characteristics across the different production sites. Meanwhile, the company mentioned that it received an Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA) on October 3, 2023. Following this, it has reached an agreement with retailers and prominent Group Purchasing Organizations (GPOs) to distribute its protein-based COVID-19 vaccine in the U.S.
Commenting on the EMA’s review and future supply arrangements, NVAX said that it “intends to supply doses of our vaccine to European countries that have requested it through an advanced purchase agreement post-authorization.”
Novavax has been struggling with multiple challenges this year after the wave of COVID-19 shots boosted the vaccine maker’s performance. Novavax has taken steps to cut costs and even slashed its workforce. It now claims that it is on track to improve its financials. Remarkably, NVAX was one of the last companies to commercially release its COVID-19 vaccines, following leaders like Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA). Notably, the Pfizer/BioNTech vaccines are more popular in the European bloc.
What is the Future Price of Novavax Stock?
On TipRanks, the average Novavax price forecast for the future is $18.33. This implies an impressive 160% upside potential from current levels. Despite the massive stock appreciation potential, analysts remain cautiously optimistic about NVAX stock. Based on two Buys and one Sell rating, NVAX has a Moderate Buy consensus rating on TipRanks. Meanwhile, year-to-date, NVAX stock has lost nearly 28%.
