Novavax Inc, a U.S.-based vaccine development company headquartered in Maryland, said the UK government will buy 60 million doses of coronavirus vaccine, NVX-CoV2373, starting in the first quarter of 2021, with its shares up about 6% in pre -market send trade on Friday.
Novavax said the Phase 3 clinical trial will be a randomized, double-blind, placebo-controlled efficacy study in approximately 9000 adults aged 18-85 in the UK.
The trial is expected to start in the third quarter of this year, with the UK government supporting and providing infrastructure to Novavax in carrying out the trial. The trial will evaluate the ability of NVX-CoV2373 to protect against symptomatic COVID-19 disease, as well as evaluate antibody and T-cell responses.
Novavax’s is one of the most advanced in developing the coronavirus vaccine, but not as advanced as AstraZeneca PLC and Moderna Inc.
“We are honored to work with the UK Government to deliver a vaccine that can provide life protection in the fight against the global health crisis,” said Stanley C. Erck, President and Chief Executive Officer of Novavax in a statement.
“Our Phase 3 clinical trial in the UK will be a critical component in assessing the efficacy of NVX-CoV2373, which in a Phase 1 trial has already been shown to be generally well tolerated and elicit robust antibody responses . We are also pleased to expand our partnership with FUJIFILM Diosynth Biotechnologies to produce our antigen on its UK site. “
Novavax shares closed more than 7% higher at $ 133.28 on Thursday, rising about 6% in pre-market trading on the last day of the week. The stock has increased by a massive 3,200% so far this year.
Novavax stock forecast
Five analysts predict the average price in 12 months at $ 227.60 with a high forecast of $ 290.00 and a low forecast of $ 105.00. The average price target represents an increase of 70.77% from the last price of $ 133.28. Of those five, four analysts rated ‘Buy’, no analyst rated ‘Hold’ and one rated ‘Sell’, according to Tipranks.
HC Wainwright raised its 12-month price target to $ 290 from $ 132 and JP Morgan raised it to overweight from neutral, raising the target price to $ 275 from $ 105. We think it’s good to buy at the current rate and target of $ 227 as 100-day Moving Average and 100-200-day MACD Oscillator signal a strong buying opportunity.
Analyst comments
“Shares of Novavax have performed significantly in the sector so far this year. Novavax’s attempts to develop candidate for influenza fentusia NanoFLu look encouraging. COVID-19 vaccine program is also progressing well, ”noted equity analysts at ZACKS Research, who set the $ 176 price target.
“Once successfully developed and launched, this could be a huge impetus for the company, given the lack of an approved vaccine to tackle the deadly COVID-19 pandemic. However, in the absence of a branded product, Novavax has not yet generated any revenue from product sales. Love for collaborative contracts also remains a weary one. Thus, any delay in pipeline development will damage the supply. “
This article was originally posted on FX Empire
