Novavax Rout deepens to 87% after Covid-Shot setbacks

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(Bloomberg) — Novavax shares sale Inc. se deepened on Tuesday, erasing $17 billion in the market from last year’s record, after the maker of the Covid-19 vaccine cut its profit forecast.

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Novavax fell 32% on Tuesday, the intraday high since February 2019 after cutting its forecast and lacking second-quarter estimates. Inventory fell about 87 from its February 2021 peak amid regulatory delays and questions about demand for a vaccine that dragged competition into the market. .

“Once again, management frustrated us and investors as delays in deliveries drove profits from the current quarter to the third quarter,” Cowen analyst Georgi Yordanov said in a report. “Novavax has almost reached a point to participate in, and capture, a small but significant percentage of the endemic market imaginable in the long term starting in 2023,” he said.

The biotech company, which rose more than 2700% in 2020 amid optimism over its covid vaccine candidate, has fallen over the past 18 months as enthusiasm evaporated amid delays in regulatory approval. Regardless, jab was approved for use in the United States. United States in July.

With the upper end of its outlook more than halved to $2. 3 billion from $5 billion, the forecast was “worse than feared in the past,” analyst B said. Riley, Mayank Mamtani. Although he considers novavax, indexed in the purchase, is still in the race for a sustainable supplemental income.

The update takes into account “several evolving market dynamics,” the company said in a statement. “We remain confident of our vaccine as a better option. “

Analysts remain very positive about stocks despite the recent sell-off. Novavax has five buy notes, two takes and one sell, according to data compiled by Bloomberg. At least three analysts cut their value targets following Monday night’s report.

The companions in the fall of Covid filming as a result of the Novavax report. Moderna, which also announced a deal to replace the timing of vaccine deliveries to the European Union, fell 6. 4%. BioNTech SE fell as much as 6. 5%, extending Monday’s drop after its second-quarter effects also fell short of estimates. The organization was shaken this year after a rebound in 2021, as investors look to the future for more hits.

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