At its peak during the pandemic, Novavax (NVAX) traded as high as over $300 in 2021. On the chart, it
failed to break past that. It found $200 as the support price. In 2022, the lower severity of Covid, with
the omicron variant, allowed countries to re-open the business.
Novavax missed its key break-out opportunity. The firm failed to get approval for its vaccine during the
many Covid pandemic waves. Short-sellers are betting heavily against this biotech’s prospects. The short
float is 20%.
Novavax’s leaders did not maximize revenue at the most crucial point of the pandemic. Although it
worked on a single-dose vaccine for the flu and Covid, this did not get to the market on time.
Moderna (MRNA) and BioNtech (BNTX) also face similar revenue declines in the upcoming flu season.
But both firms collected billions in revenue. They shored up their balance sheet with cash.
Novavax’s misstep will shake up shareholder confidence. The stock will likely fall steadily from here. Its
cash burn rate will pressure the firm to issue stock. This would dilute shareholders.
Bearish investors may consider betting against the company from here. The firm is strategically
disillusioned. It does not have enough momentum to carry any product to market.
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