Novavax (NVAX) won Food and Drug Administration authorization for its Covid booster on Wednesday, but NVAX stock dipped slightly in response.
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The stock fall comes amid several key drawbacks for the Novavax shot. The FDA signed off on a third dose of Novavax’s vaccine as a first booster. Adults can get the booster six months after finishing their primary series. That leaves about 48% of adults in the U.S. eligible for Novavax’s booster.
Novavax is also launching its booster after the FDA authorized Pfizer’s and Moderna’s updated shots. The new messenger-RNA-based vaccines target the original strain as well as two omicron subvariants. But the Novavax shot — which uses a protein-based technology — is configured for the original strain only.
The protein vaccine could be a draw for some people, however. It’s based on older technology.
“Offering another vaccine choice may help increase Covid-19 booster vaccination rates for these adults,” Novavax Chief Executive Stanley Erck said in a written statement.
In midday trades on the stock market today, NVAX stock fell a fraction, below 18.60.
NVAX Stock Under Pressure
The FDA based its decision on two studies of the Novavax shot. In a final-phase study, people received the booster eight to 11 months after their primary series. Following the booster dose, antibody levels increased significantly compared with pre-boost levels, Novavax said in a news release.
Next, the vaccine decision heads to the Centers for Disease Control and Prevention.
NVAX stock remains under pressure despite winning authorizations globally for the Covid vaccine. Shares have a worst-possible Relative Strength Rating of 1 on a scale of 1-99. This means Novavax stock ranks in the bottom 1% of all stocks in terms of 12-month performance, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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