Shah Capital is reportedly pressing Novavax Inc. (NASDAQ:NVAX) to consider a sale of the biotech firm, citing continued struggles in the rollout of its COVID-19 vaccine.
• NVAX stock is showing exceptional strength. View the charts here.
The hedge fund holds a 7.2% stake and is the company's second-largest shareholder. The fund said in a Tuesday letter that Novavax's assets could achieve "far greater potential in the hands of a large capable pharma entity."
Shah suggested that major pharmaceutical companies, including Sanofi SA (NASDAQ:SNY), Merck & Co. Inc. (NYSE:MRK), GSK Plc (NYSE:GSK), and AstraZeneca Plc (NASDAQ:AZN), could be potential buyers for Novavax.
Himanshu Shah, founder and chief investment officer of Shah Capital, told Reuters the company could be valued at "at least $5 billion" based on the commercial potential of its vaccines. As per data from Benzinga Pro, Novavax has a market cap of around of $1.4 billion.
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He also noted that political conditions and scientific data are currently favorable for the company.
Last year, the fund withdrew its campaign opposing the re-election of three Novavax board members after the company finalized a licensing deal with Sanofi.
"The problem has been the sales," Shah said in his statement to Reuters, pointing to a series of marketing missteps that have hindered Nuvaxovid, Novavax's protein-based COVID-19 vaccine. According to the hedge fund, the shot captured just 2% of the market last season, reflecting underperformance compared with competitors.
As of Oct. 2, Novavax had distributed roughly 7,000 doses of its vaccine, while rivals Pfizer Inc. (NYSE:PFE) and Moderna Inc. (NASDAQ:MRNA) each rolled out nearly six million shots, Shah noted.
Novavax reported second-quarter 2025 sales of $239.24 million, compared to $415 million a year ago, beating the consensus of $156.29 million.
Novavax revealed preclinical data from the H5N1 avian pandemic influenza vaccine candidate in July.
Leveraging Novavax's recombinant, protein-based nanoparticle technology and Matrix-M adjuvant, the vaccine candidate induced robust immune responses in nonhuman primates after either single — or two-dose intranasal (IN) or intramuscular (IM) administration.
NVAX Price Action: Novavax stock is up 3.07% at $8.89 at publication on Tuesday.
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