Novavax flu vaccine potential being overlooked, say B. Riley FBR

Investors did not interpret Novavax’s trial results for its respiratory syncytial virus vaccine properly and are overlooking its flu vaccine potential, B. Riley FBR analyst George Zavoico tells investors in a research note. Prepare would have been a successful registrational Phase III trial if it had incorporated some minor design changes understood now but unknown when the trial was planned, says the analyst. He points out that Novavax will meet with the FDA in the next 30-90 days to present a case for accepting a biologics license application for review this year, based on “robust” vaccine efficacy reported for clinically meaningful secondary endpoints. Zavoico ascribes a low probability to this outcome, but notes it would be a game-changer for Novavax if the FDA makes a decision to review a ResVax BLA, based only on the available data set. He lowered his price target for the shares to $1.75 from $10 and keeps a Buy rating on the name.
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