Vaccine specialist Novavax (NVAX) stepped up to the plate, and hit the ball out of the park yet again. Investors had already enjoyed some pretty hefty gains in 2020 before more positive developments sent the stock into the stratosphere. Last week, news that Novavax had received a $384 million grant from the Coalition for Epidemic Preparedness Innovations (CEPI) to support the development of its COVID-19 vaccine candidate, NVX-CoV2373, resulted in a 133% addition to the share price.
NVAX has been fast off the mark with its COVID-19 vaccine program and a Phase 1/2 trial is currently underway. After data was presented last week at the World Vaccine Congress (WVC), Oppenheimer’s Kevin DeGeeter cites some key takeaways which have only added to the 5-star analyst’s bullish sentiment.
In addition to suggesting Novavax’s proprietary Matrix-M adjuvant “may elicit a stronger immune response than traditional alum adjuvant,” DeGeeter argues that the data indicated NVX-CoV2373 “may provide clinically important protection after the first dose of a two-dose regimen.”
Expounding on this, Degeeter stated, “Our NVAX conclusions are based on preclinical data from baboons, which are phylogenetically closer to humans than most non-human primates and have similar immune systems. Results suggest IgG titers after one dose of NVX-CoV2373 were comparable to human convalescent serum. If the findings are recapitulated in Phase I development, in our view, NVX-CoV2373 may offer first responders and other high-risk populations quicker protection than we had previously expected.”
The ongoing NVX-CoV2373 Phase 1 study consists of five-dose regimens, including three groups receiving two injections and one group receiving a single 25 ug injection, the highest dose. The final dosing strategy will be determined following the Phase 1 data readout.
Consequentially, DeGeeter reiterated an Outperform call and raised the price target from $38.50 to $40. Following Novavax’s unstoppable surge, the target implies downside potential of 26%. (To watch DeGeeter’s track record, click here)
What about the rest of the Street’s take on Novavax? Based solely on Buy ratings – 5, as it happens – the vaccine specialist currently holds a Strong Buy consensus rating. The average price target is $47.60, and suggests downside potential of 13% over the coming months. (See Novavax stock analysis on TipRanks)
