Novavax won Food and Drug Administration authorization for its Covid booster on Wednesday, but NVAX stock dipped slightly in response.
The stock fall comes amid several key drawbacks for the Novavax shot. The FDA signed off on a third dose of Novavax's vaccine as a first booster. Adults can get the booster six months after finishing their primary series. That leaves about 48% of adults in the U.S. eligible for Novavax's booster.
Novavax is also launching its booster after the FDA authorized Pfizer's and Moderna's updated shots. The new messenger-RNA-based vaccines target the original strain as well as two omicron subvariants. But the Novavax shot — which uses a protein-based technology — is configured for the original strain only.
The protein vaccine could be a draw for some people, however. It's based on older technology.
"Offering another vaccine choice may help increase Covid-19 booster vaccination rates for these adults," Novavax Chief Executive Stanley Erck said in a written statement.
On the stock market today, NVAX stock fell 3.7% to 17.93.
NVAX Stock Under Pressure
The FDA based its decision on two studies of the Novavax shot. In a final-phase study, people received the booster eight to 11 months after their primary series. Following the booster dose, antibody levels increased significantly compared with pre-boost levels, Novavax said in a news release.
Next, the vaccine decision heads to the Centers for Disease Control and Prevention.
NVAX stock remains under pressure despite winning authorizations globally for the Covid vaccine. Shares have a worst-possible Relative Strength Rating of 1 on a scale of 1-99. This means Novavax stock ranks in the bottom 1% of all stocks in terms of 12-month performance, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
