Novavax risk/reward favorable into Phase 3 readout, says JPMorgan

While Novavax is up 27% in the last three months, in part reflecting positive Phase 2 NanoFlu data from earlier this month, the stock’s risk/reward profile remains favorable into the Phase 3 maternal-infant ResVax trial readout, JPMorgan analyst Eric Joseph tells investors in a research note. A clinical “near-win” scenario is still a regulatory/commercial win for ResVax, with a 50% upside opportunity to current expectations, contends Joseph. He also believes “unequivocally positive data” warrants fair valuation at a near-doubling to current levels, while a trial failure implies downside of up to 60%-80%. The analyst keeps an Overweight rating on Novavax.

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