Why Novavax Shares Are Falling Today

Novavax Inc NVAX is trading lower Wednesday amid reports suggesting the company is facing issues with the purity of its vaccine candidate.

According to reports, Novavax has been unable to consistently prove it can manufacture a vaccine shot that meets the required quality standards.

The Food and Drug Administration discusses purity levels with each manufacturer, but each batch of the COVID-19 vaccine is supposed to be at least 90% pure.

Novavax has reportedly struggled to maintain purity levels that are close to the 90% threshold. The company recently showed purity levels around the 70% range, per reports. 

Related Link: Novavax Shares Plunge To Lows Since Mid-May As COVID-19 Vaccine Woes Continue

In a response to the reports, Novavax issued a press release in which it confirmed that the company is confident in its ability to deliver a high-quality vaccine. 

"We are confident that our vaccine will soon play a significant role in the global COVID-19 vaccine arsenal, differentiated by its potential to help address two major issues slowing the world’s ability to end the pandemic: global distribution challenges and vaccine hesitancy," said Stanley Erck, president and CEO of Novavax.

Novavax is a biotechnology company that develops vaccines. The company works in the clinical stage of development with a focus on delivering novel products that prevent a broad range of diseases.

NVAX Price Action: Novavax has traded as high as $331.68 and as low as $76.59 over a 52-week period.

The stock was down 22.90% at $123.60 at time of publication.

Photo: Maryland GovPics from Flickr.