On Wednesday, H.C. Wainwright maintained a Buy rating and a $19.00 stock price target for Novavax (NASDAQ:NVAX). The firm's positive stance comes on the heels of Novavax's announcement on Tuesday regarding its third-quarter financial and operating results for 2024. The results highlighted the company's refined research and development focus and a strategy for expansion beyond its COVID-19 vaccine offerings.
Novavax's recent operational advancements were praised, particularly following the May 2024 licensing agreement with Sanofi (NASDAQ:SNY). This partnership is aimed at co-commercializing COVID-19 vaccines and developing new influenza-COVID-19 combination vaccines.
The deal, potentially worth up to $1.2 billion in payments to Novavax, grants Sanofi co-exclusive rights to distribute Novavax's adjuvanted COVID-19 vaccine in the United States and other regions, exclusive rights for combination use with Sanofi's flu vaccines, and a non-exclusive license for Novavax's Matrix-M adjuvant in other vaccine products.
The analyst highlighted the flexibility of Novavax's operational strategy, which may include advancing investigational vaccines for pandemic influenza and respiratory syncytial virus (RSV). This aspect of Novavax's strategy is currently undervalued according to H.C. Wainwright.
The firm has reiterated its Buy rating and stock price target for Novavax based on these developments, signaling confidence in the company's potential for growth and innovation in the vaccine market. This endorsement reflects the analyst's belief in the strategic options now available to Novavax, which could enhance its position in the global vaccine industry.
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