J.P. Morgan Reiterates a Hold Rating on Novavax

By Carrie Williams

In a report released today, Jessica Fye from J.P. Morgan reiterated a Hold rating on Novavax (NASDAQ: NVAX). The company’s shares opened today at $1.47, close to its 52-week low of $1.16.

Fye observed:

“Beyond 3Q results, Novavax provided additional analysis from the recently reported phase III Resolve trial evaluating its RSV vaccine in older adults and announced a restructuring to save $70-$100mm of burn in 2017 vs 2016. NVAX continues to investigate a potential path forward for its RSV vaccine in the elderly, and the company will be taking a step back to run a phase II immunogenicity study in older adults to assess new dosing and formulations. We remain skeptical of continued investment in the older adults setting following the disappointing phase III data. Looking ahead, the focus of the company will be shifting to the ongoing maternal immunization phase III trial (Prepare). Overall, despite the announced cost cutting, we see a continued significant overhang on NVAX shares until further data proves such caution is unwarranted.”

According to TipRanks.com, Fye is ranked 0 out of 5 stars with an average return of -18.4% and a 25.9% success rate. Fye covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals Inc, Alder Biopharmaceuticals, and Lexicon Pharmaceuticals.

Novavax has an analyst consensus of Moderate Buy.

The company has a one year high of $9.23 and a one year low of $1.16. Currently, Novavax has an average volume of 18.71M.

Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NVAX in relation to earlier this year. Most recently, in September 2016, John Trizzino, the SVP, Commercial Operations of NVAX bought 46,000 shares for a total of $99,820.

Novavax, Inc. operates as a clinical-stage biopharmaceutical company, which engages in the provision of development of recombinant nanoparticle vaccines and adjuvants. Its product pipeline targets infectious diseases with vaccine candidates in clinical development for respiratory syncytial virus (RSV), seasonal influenza, pandemic influenza, and Ebola virus (EBOV). The company was founded in 1987 and is headquartered in Gaithersburg, MD.