All Eyes on Upcoming Section 3 PREVENT-19 Research Readout
Regardless of year-to-date positive aspects of 61%, shares of Novavax (NVAX) have retreated by 44% for the reason that yearly highs of early February. Nevertheless, in keeping with B. Riley analyst Mayank Mamtani, the inventory is well-positioned to renew its upwards curve forward of a possible near-term catalyst.
Outcomes from the Section 3 PREVENT-19 research for Novavax’ Covid-19 vaccine candidate, NVX-CoV2373, are anticipated shortly, and optimistic knowledge might pave the way in which for the corporate to submit an Emergency Use Approval (EUA) submitting in Q2. This might lead to “potential U.S. market entry in late 2Q/early 3Q.”
Mamtani optimistic outlook for NVAX’ providing is predicated on the just lately introduced “overwhelmingly optimistic outcomes” from two pivotal U.S. centric research – AstraZeneca’s AZD1222 in grownup contributors and PFE/BNTX’s BNT162b2 in ages 12-15 years outdated.
The latter confirmed 100% efficacy (0 vs 18) and “strong antibody responses,” which had been higher than these reported in an earlier research of vaccinated 16-25 years outdated contributors.
“Whereas we await disclosure of particular particulars round nAb titers and reactogenicity,” stated the 5-star analyst, “We view this usually as a optimistic read-through for NVAX as a sturdy antibody response appears to be translating in excessive VE charges much like that noticed within the younger grownup group.”
Mamtani additionally thinks the halt to AZD1222’s vaccine trials in pediatrics, which got here after the EMA (European Medicines Company) launched a cautionary assertion round a possible causal hyperlink between AstraZeneca’s vaccine and uncommon blood clots (reported in a comparatively youthful grownup affected person group), was “taken out of an abundance of warning.”
“The entire case stories (n=22) of blood mind clots stay extraordinarily low, with advantages persevering with to outweigh dangers,” Mamtani famous.
The analyst believes Novavax is the “major beneficiary of the combined newsflow round AZD1222.”
Shopper selection will grow to be more and more necessary as extra vaccines hit the market and youthful grownup inhabitants teams grow to be eligible to get vaccinated too. The impact might “drive thoughts and market share in direction of ‘2373 assuming best-in-class profile maintained in upcoming knowledge releases and business availability throughout the projected mid-year timeframe.”
To this finish, Mamtani reiterated a Purchase score on NVAX and has a $365 value goal for the shares. Buyers could possibly be pocketing positive aspects of 107%, ought to Mamtani’s thesis play out accordingly. (To observe Mamtani’s monitor document, click on right here)
Mamtani’s optimistic outlook is definitely no anomaly on the Road. All 4 different current Novavax critiques have reached the identical conclusion – Purchase. The inventory’s Robust Purchase consensus score is backed by a bullish common value goal, as nicely; at $323, the 12-month upside potential is available in at ~80%. (See NVAX inventory evaluation on TipRanks)
To seek out good concepts for shares buying and selling at engaging valuations, go to TipRanks’ Finest Shares to Purchase, a newly launched device that unites all of TipRanks’ fairness insights.
Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is vitally necessary to do your personal evaluation earlier than making any funding.
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