Novavax Stock Plunges On Report of COVID Vaccine Production Delays
Politico reported Wednesday that Novavax has fallen short of production targets thanks in part to issues linked to testing the ‘purity’ of its NVX-CoV2373 coronavirus vaccine candidate.
Earlier this summer, the Gaithersburg, Maryland-based drugmaker said it expects to seek regulatory approval from the U.S. Food & Drug Administration for NVX-CoV2373 in the fourth quarter — a few months behind its prior estimate — but insisted that it remains on track to reach manufacturing capacity of 100 million doses per month by October and 150 million does per month by the end of the year.
Novavax also noted that the U.S. government — which has invested $1.6 billion into the group — had been “instructed to prioritize alignment” with FDA testing procedures, noting the government “further indicated that [it] will not fund additional US manufacturing” until the firm has done so.”
“We are highly encouraged by the filing of regulatory submissions in multiple markets (and) we view these submissions as the first of many filings to come, which will allow NVX-CoV2373 to be made available at a global scale,” CEO Stanley Erck said at the time. “Our clinical successes over the second quarter reaffirm our confidence in NVX-CoV2373’s differentiated efficacy profile.”
Novavax shares were marked 27.5% lower in pre-market trading Wednesday to indicate an opening bell price of $116.50 each, a move that would extend the stock’s six-month decline to around 44%.