Tech

Novavax Shares Shift as JPMorgan Lowers Price Target and Downgrades

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Novavax Inc. (NVAX) Shares fell sharply on Thursday after analysts at JPMorgan lowered their rating and price target for the drug maker following its decision to lower its short-term sales forecast.

JPMorgan analyst Eric Joseph lowered his stock rating to “underweight,” from “neutral,” while lowering his price target more than $100 to $27 a share.

Last month Novavax pruned all year round revenue forecast and warned it does not expect to sell more of its Covid vaccines in the United States this year after a larger-than-expected third-quarter loss of $6.53 per share.

Novavax halved its 2022 sales forecast to between $2 billion and $2.3 billion, citing the late entry of its Covid vaccine into a crowded domestic market, adding that it does not expect a new order from the drug this year. World Health Organization supported COVAX facility, as government buyers work with supply purchased earlier in the year.

The U.S. Food and Drug Administration has recommended that emergency use authorization be granted for the group’s Covid vaccine — known as NVX-CoV2373 — to patients over the age of 18 in early June, in addition to previous authorizations given to Pfizer. (PFE) Johnson & Johnson (JNJ) and Moderna (MRNA) .

In effect, Pfizer said sales of both the Comirnaty vaccine and the oral Paxlovid treatment should happen combine for about $54 billion this year.

Novavax shares were down 5.7% in pre-market trading Thursday, indicative of an opening bell price of $24.40 apiece, a move that would extend the stock’s decline to about 82% so far.

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