At the star of this year, analysts predicted that investors in Novavax, Inc. (NASDAQ:NVAX) would be keenly watching for any update in December that could give any signal the future of Gaithersburg biotech. On the contraly, investors got a different announcement.
The company’s shares went down by 22% on Tuesday. This was triggered by the company’s decisions to release data for phase 1/2 trial of the NanoFlu seasonal flu vaccine candidate in February. Many investors expected results to be released before end of the year.
Additionally, the company announced plans to carry on with its plan for phase 3 clinical trial of an RSV vaccine candidate for infants via maternal immunization. RSV is known for causing dangerous among small children and adults of advanced age. The company is targeting a global RSV vaccine market that goes over$6 billion with several vaccine candidates.
This kind of disappointment on Wall Street is common with Novavax. In July 2017, analysts said the company’s cautious path forward is below expectations. At that time, the company had decided to another phase of clinical study on its RSV vaccine candidate for adults of advanced age as opposed to proceeding to phase 3 clinical trials which is the last test of the success of the product. The vaccine massively failed in 2016 during its phase 3 trial, prompting the company to change its approach.
Following these failures Novavax has a big task of working hard so that it can prove its capability. However, this is not what the company seems to be working on. Officials from the company remained economical on information regarding the effectiveness of NanoFlu’s. Officials from the company however said the vaccine will significantly benefit from the recent concerns raised concerning the status
A publication in the England Journal of Medicine created a lot of public concerns and touched on the poor level of efficacy in many of the existing flu vaccines. This is mainly due to the genetic changes exhibited by flu virus.