Novavax ( (NVAX) ) has fallen by -19.26%. Read on to learn why.
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Novavax has experienced a significant decline in its stock price, dropping by 19.26% over the past week. This downturn comes despite recent positive developments, including a $175 million milestone payment from Sanofi following the U.S. approval of its COVID-19 vaccine, Nuvaxovid. The company has also been successful in reducing costs and strengthening its financial position. However, a downgrade by BofA to ‘Underperform’ with a $7 price target has likely contributed to the negative sentiment surrounding the stock.
In addition to the downgrade, Novavax faces challenges such as a reliance on partner performance for future profitability and a decrease in product sales due to the closeout of U.S. market activities. Despite these hurdles, the company has been proactive in enhancing its partnerships, notably updating its agreement with Takeda to better serve the Japanese market. Furthermore, Novavax’s collaboration in the rollout of the R21 Matrix-M malaria vaccine has shown substantial progress, with over 20 million doses sold.
While Novavax is focused on achieving non-GAAP profitability by 2027 and has projected adjusted total revenue for 2025 to be between $1 billion and $1.050 billion, the stock’s recent performance highlights the complex financial landscape the company must navigate. With a strong cash position and ongoing strategic initiatives, Novavax remains committed to pursuing growth opportunities despite the current market challenges.