Shares of American pharmaceutical company Novavax (NVAX) fell 19% on reports that the U.S. Food and Drug Administration (FDA) has stopped one of its clinical trials due to safety concerns.
The clinical trial that’s been halted by the FDA was focused on a combination Covid-19 influenza vaccine. The pharmaceutical regulator reportedly stopped the trial after a person who received the experimental drug developed nerve damage.
The FDA has also stopped any further development of Novavax’s standalone influenza vaccine, pending further investigation.
In a news release, Novavax said that it hopes to resolve the matter with the FDA quickly and proceed with a phase three clinical trial for the combination vaccine.
Novavax is one of several pharmaceutical companies that is developing a vaccine to treat both influenza and Covid-19.
Pharmaceutical concerns such as Moderna (MRNA) and Pfizer (PFE) are trying to bring to market a vaccine that treats both the seasonal flu and Covid-19 as sales of their standalone Covid medications decline.
The stock of Novavax has risen 57% over the last 12 months and is currently trading at $10.15 U.S. per share.
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