NOVAVAX, INC. shares reach new 52-week low after FDA announces U.S. regulatory authorization for Omicron-adjusted booster vaccines developed by rival COVID-19 vaccine makers Pfizer /BioNTech and Moderna.

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NOVAVAX,($NASDAQ:NVAX): The shares of Novavax reached a new 52-week low on Wednesday after the FDA announced U.S. regulatory authorization for Omicron-adjusted booster vaccines developed by rival COVID-19 vaccine makers Pfizer /BioNTech and Moderna. Maryland-based biotech was the last entrant to join the U.S. immunization drive for COVID-19 in July when the regulators cleared its protein-based shot for those aged 18 years and older. However, as the pandemic impact waned, its vaccine sales came under pressure, and the company posted a massive Q2 sales miss in August and halved its 2022 revenue guidance. The company’s shares have been under pressure in recent months as its sales have disappointed investors. It remains to be seen how Novavax will be affected in the long term by the FDA’s decision, but it is likely that this will have a negative impact on its market share and earnings.

Market Price

This news comes as a setback for NOVAVAX, INC., which was hoping to gain FDA approval for its own vaccine candidate.

VI Analysis

NOVAVAX, INC. is a high risk investment in terms of financial and business aspects. Its business model is not sustainable in the long term, and its financial situation is not good. The company’s fundamentals do not reflect its long term potential. You may look at what are the business and financial areas presenting potential risks in our website.

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Summary

The stock price for NOVAVAX, INC. Investors may be concerned about the FDA’s decision to authorize other vaccines before NOVAVAX, INC.’s own vaccine candidate, which is still undergoing clinical trials. There is also competition from other vaccine makers, such as Johnson & Johnson, which is already authorized to sell its vaccine in the United States. Despite these challenges, NOVAVAX, INC. remains a leading vaccine developer with a strong pipeline of candidates. The company’s stock may be a bargain for long-term investors willing to take on some risk.