NVAX Stock: Why The Price Substantially Fell Today

By Amit Chowdhry ● Oct 20, 2021
  • The stock price of Novavax, Inc. (NASDAQ: NVAX) fell by over 23% pre-market today. This is why it happened.

The stock price of Novavax, Inc. (NASDAQ: NVAX) fell by over 23% pre-market today. Investors are responding negatively to a report by Politico revealing that Novavax was facing major hurdles proving it can manufacture a short that meets the quality standards of regulators. The report was based on 3 anonymous sources with the company. 

As a result, the COVAX international consortium is likely going to fall short of a 2 billion dose target to lower and middle-income countries by the end of next year by over 1 billion doses.

“Although Novavax recently attested to some of its analytics and testing issues in a quarterly filing with the Securities and Exchange Commission, the company’s issues are more concerning than previously understood, according to two of the people with direct knowledge of the matter,” says the Politico report. “The Food and Drug Administration works out purity levels with each manufacturer according to June 2020 guidance for coronavirus vaccines, but it is generally understood that each vaccine batch should reach at least 90 percent. The company has struggled to attain anywhere close to that, one of the people with direct knowledge of the situation said. Another person familiar with the company’s manufacturing process said Novavax has recently shown purity levels hovering around 70 percent.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.