Novavax skyrocketed the day after data was released on the first human trial of its Covid-19 vaccine, the stock is booming and analysts say the data looks extraordinarily promising.
Shares of Novavax (ticker: NVAX) briefly crashed Tuesday night amid confusion over the trial’s safety data. But in the light of day on Wednesday, shares of Novavax jumped 10% to $ 172.17 per share.
In a note Wednesday morning, Cantor Fitzgerald analyst Charles Duncan said Novavax’s Covid-19 vaccine appeared to be “more than viable, dare I say ‘leading the class”. ” JP Morgan analyst Eric Joseph said it was “not too far. to conclude “that the activity of the neutralizing antibodies of the vaccine” appears to be the best in its class “.
Joseph upgraded Novavax to overweight Neutral and set a price target of $ 275.
The two analysts, however, warned that it remained difficult to compare the activity of neutralizing antibodies between different data sets from the first trials of the Covid-19 vaccine.
In its statement on Tuesday, Novavax announced the results of the phase 1 part of the phase 1/2 trial of its Covid-19 vaccine – a randomized controlled trial of 131 healthy adults. The study found that all subjects who received the vaccine developed neutralizing antibody responses after the second dose. The reactions were generally mild. There were no serious adverse events.
In a note Tuesday night, Evercore ISI analyst Josh Schimmer wrote that in a comparison of absolute neutralizing antibody levels between the Covid-19 vaccine trials that have been read so far, “NVAX is a winner clear.” But it’s not clear that this comparison is appropriate, or even that high levels of neutralizing antibodies would necessarily correlate with higher degrees of protection against the virus.
Novavax’s vaccine is based on a technology that is much more proven than the messenger RNA-based vaccines under development at Moderna (MRNA) and Pfizer (PFE). No messenger RNA vaccine has ever been approved by regulators; the Food and Drug Administration has approved adjuvanted subunit vaccines like the one Novavax is developing.
“Given the ‘proven’ nature of adjuvanted subunit vaccines, we suspect this program will emerge as a preferred option for many, with intense efforts to scale up / scale up,” Schimmer wrote.
Novavax has received $ 1.6 billion from the US government to develop its vaccine. He plans to conduct a Phase 3 trial of the vaccine later this year.
Write to Josh Nathan-Kazis à [email protected]