Timing Favors Novavax's Delayed Approval, Arrival Ahead of Peak COVID Vaccine Demand

Last week, Novavax Inc NVAX received FDA authorization for its updated COVID-19 vaccine, targeting the omicron subvariant XBB.1.5 in individuals aged 12 and older. 

Wall Street analysts are optimistic about Novavax's prospects despite its vaccine's release delay compared to Pfizer Inc PFE and Moderna Inc's MRNA offerings. 

While Pfizer and Moderna struggled with supply and distribution issues, CNBC noted Novavax could benefit from improving logistics in the private market.

"We know that a lot of people have tried to get an mRNA vaccine, but they aren't able to because of logistical challenges of access and distribution," Jefferies analyst Roger Song told CNBC. "So, that's one reason why the two or three weeks delay won't necessarily be a hurdle for Novavax." 

The timing seems favorable for Novavax, arriving just before an anticipated peak in COVID-19 vaccine demand this fall and winter. 

The dynamics of vaccine demand have shifted from an emergency state to a more measured approach, with Americans adopting a wait-and-see attitude.

As the rollout progresses, Novavax's vaccine is expected to be as widely available as Pfizer and Moderna's at various distribution points. 

However, the ultimate success will depend on how many Americans choose to get another COVID-19 vaccine, setting a new benchmark for the industry.

Price Action: NVAX shares are down 2.17% at $7.46 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.