Incannex Healthcare stock tumbles after filing $100M offering
On Monday, JPMorgan analyst Eric Joseph reaffirmed an Underweight rating on Novavax stock, with a price target set at $7.00 on (NASDAQ:NVAX), near the current trading price of $7.68. According to InvestingPro data, the stock trades at a P/E ratio of 2.47, suggesting a relatively low valuation multiple. The analyst’s statement followed the recent approval of the company’s Biologics License Application (BLA) for its Nuvaxovid vaccine. The vaccine has been approved with a focused label for use in older and high-risk adults, and Novavax is expected to receive milestone payments from Sanofi (NASDAQ:SNY), including a $175 million BLA milestone in the third quarter and an additional $50 million in the second half of 2025.
Despite the approval being seen as a positive development for Novavax shares, the analyst pointed out that Nuvaxovid sales are projected to be minimal in 2025, with Sanofi treating the year as educational and observational. While InvestingPro data shows impressive revenue growth of 25.92% over the last twelve months and an overall financial health score of "GREAT," the true market reception of Nuvaxovid is anticipated to be clearer in the second half of 2026. Furthermore, the analyst noted that the required phase 4 efficacy study for individuals aged 50-64 does not impact the vaccine’s authorization status and that the associated costs are expected to be neutral to Novavax’s operational expense guidance through 2027.
The analyst also highlighted the importance of the indicated population for the vaccine’s commercial success, which aligns with their forecasts. However, the lack of mid-term value-accretive events from Novavax’s proprietary pipeline could lead to a reversal of the stock’s current upward movement. With a market capitalization of $1.21 billion, Novavax shares experienced a 23% increase on the day of the announcement, while the Nasdaq Biotechnology Index (NBI) rose by 1%. For deeper insights into Novavax’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Novavax Inc. reported strong financial results for the first quarter of 2025, significantly surpassing market expectations. The company achieved an earnings per share of $2.93, well above the forecasted loss of $0.43, and revenue reached $667 million, far exceeding the anticipated $251.8 million. Additionally, Novavax received FDA approval for its COVID-19 vaccine, Nuvaxovid™, for adults aged 65 and older and individuals aged 12 through 64 with high-risk conditions. This approval has triggered a $175 million milestone payment from Sanofi Pasteur Inc., under a collaboration and license agreement. Furthermore, the FDA has requested a new Phase 4 trial to evaluate the vaccine’s efficacy and safety in a broader age group. Analysts have noted the significance of this approval, highlighting Novavax’s potential to capture a unique segment of the vaccine market as the only non-mRNA option. The company is also preparing for the commercial delivery of the 2025-2026 COVID-19 vaccine formula in the U.S. this fall, in collaboration with Sanofi.
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