Updated at 11:29AM EST
Novafax Corporation (NVAX) Stocks fell sharply on Thursday after analysts at JPMorgan cut their rating and price target on the drugmaker after its decision to cut its near-term sales forecast.
Eric Joseph, an analyst at JPMorgan, lowered his valuation of the stock to “underweight,” from “neutral,” while slashing the target price by more than $100, to $27 a share, citing weak demand for a near-term Covid vaccine.
Last month, Novavax cut its full-year revenue forecast and warned that it does not expect to sell more Covid vaccines in the United States this year after a more-than-expected third-quarter loss of $6.53 per share.
“Despite the poor print in the second quarter and the diminishing revenue guidance review, our reading of recent vaccine dynamics in the EU and the US suggests more indicative cuts in the near future,” Joseph said in his downgrade note. — and the long-term headwind of meaningful novaxofide uptake.”
Novavax shares were down 8.85% in early trading Thursday to trade at $23.58 per share, a move that would extend the stock’s year-to-date decline to about 83.5%.
Novavax slashed its 2022 sales forecast in half to between $2 billion and $2.3 billion, citing the delay in entering the Covid vaccine into the saturated domestic market, adding that it does not expect new demand this year from the WHO-backed COVAX facility, as buyers work Governments through supply purchased earlier in the year.
The US Food and Drug Administration recommended emergency use authorization for the group’s Covid vaccine – known as NVX-CoV2373 – for patients over the age of eighteen in early June, adding to previous licenses granted to Pfizer. (PFE) Johnson & Johnson (JNJ) and modern (mRNA) .
In fact, Pfizer said sales of both Comirnaty and Paxlovid oral vaccines should meet about $54 billion this year.