NOVAVAX Settles Class Action Lawsuit Over COVID Vaccine for $47M
December 6, 2023
🌧️Trending News
The settlement will cost Novavax ($NASDAQ:NVAX) $47 million to resolve the claims that the company misled investors about the development of the vaccine. The lawsuit alleged that Novavax misstated and omitted important facts about the timeline of the development of its experimental vaccine. This settlement is a major milestone for Novavax as the company continues to develop its vaccine for public use.
Novavax has been working hard to bring its vaccine to market as quickly as possible in order to help stem the spread of the virus and protect vulnerable populations. With this settlement, the company can now move forward with its development while also providing investors with some degree of assurance that their investments will be protected.
Price History
The total settlement amount was revealed to be $47M. As a result of the news, NOVAVAX stock opened at $5.8, but closed at $5.6, down 2.8% from its prior closing price of $5.8. This news has been met with mixed reactions from investors as the stock continues to fluctuate. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Novavax. NOVAVAX_Settles_Class_Action_Lawsuit_Over_COVID_Vaccine_for_47M”>More…
| Total Revenues | Net Income | Net Margin |
| 973.73 | -548.92 | -56.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Novavax. NOVAVAX_Settles_Class_Action_Lawsuit_Over_COVID_Vaccine_for_47M”>More…
| Operations | Investing | Financing |
| -655 | -71.79 | 95.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Novavax. NOVAVAX_Settles_Class_Action_Lawsuit_Over_COVID_Vaccine_for_47M”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.66k | 2.34k | -5.71 |
Key Ratios Snapshot
Some of the financial key ratios for Novavax are shown below. NOVAVAX_Settles_Class_Action_Lawsuit_Over_COVID_Vaccine_for_47M”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 68.2% | – | -55.0% |
| FCF Margin | ROE | ROA |
| -74.6% | 46.8% | -20.2% |
Analysis
As part of our financial analysis, GoodWhale has evaluated the performance of NOVAVAX. According to our Star Chart, NOVAVAX is strong in stability, medium in growth and weak in asset, dividend and profitability. Based on this evaluation, we have classified NOVAVAX as a ‘sloth’, a type of company that has achieved revenue or earnings growth slower than the overall economy. Given NOVAVAX’s weak performance profile, potential investors may be more suited to those who are invested in low-risk, value-oriented strategies. At the same time, NOVAVAX has a low health score of 2/10 with regard to its cash flows and debt, which makes it less likely to sustain future operations in times of crisis. Investors should therefore consider all these factors before investing in NOVAVAX. More…
Peers
The competition between Novavax Inc and its competitors is fierce. Moderna Inc, BioNTech SE, and Pfizer Inc are all major players in the vaccine industry, and each company is striving to develop the most effective vaccine possible. While Novavax Inc has made great strides in recent years, its competitors are not far behind.
– Moderna Inc ($NASDAQ:MRNA)
Moderna Inc is a clinical stage biotechnology company that discovers, develops, and commercializes therapeutics and vaccines based on RNA. As of 2022, Moderna Inc has a market cap of 48.32B and a ROE of 80.28%. Moderna Inc’s mission is to harness the power of RNA to revolutionize medicine and change the way diseases are prevented, treated, and cured.
– BioNTech SE ($NASDAQ:BNTX)
As of 2022, BioNTech SE has a market cap of 32.44B and a Return on Equity of 71.82%. The company is a German biotechnology company that develops and manufactures vaccines and antibody therapeutics. The company has developed a platform that allows it to rapidly design and produce custom-made vaccines and therapeutics.
– Pfizer Inc ($NYSE:PFE)
Pfizer Inc is a pharmaceutical company with a market cap of 247.45B as of 2022. The company has a return on equity of 24.63%. Pfizer Inc is a research-based, global pharmaceutical company that discovers, develops, manufactures, and markets safe, effective, and affordable human and veterinary medicines. The company is one of the world’s largest research-based pharmaceutical companies, with products available in more than 150 countries.
Summary
Investors of Novavax have recently seen a resolution to a class action lawsuit in which the company agreed to pay out $47 million. This settlement has had a positive impact on Novavax’s stock price, with the company’s share price rising soon after the announcement. The settlement appears to be a positive development for Novavax and its investors, as it provides some clarity and closure to the case, allowing focus to return to the company’s clinical progress and financials.
