Two reasons why Novavax stock is down over 20% today
2022.12.15 10:09
© Reuters 2 reasons why Novavax (NVAX) stock is down over 20% today
By Senad Karaahmetovic
Shares of Novavax (NASDAQ:) are trading about 20% lower Thursday, further highlighting the catastrophic year for the stock, which is down 88% year-to-date (YTD) based on yesterday’s close.
Novavax stock was hit yesterday after-hours after the company said it offered $125 million of shares and $125M of convertible bonds. For Bloomberg Intelligence analysts, the dual offering doesn’t “inspire confidence in Covid-19 vaccine profitability.”
They also said that they won’t be surprised if Novavax was forced to raise more funds in the future, which would hurt the NVAX stock again.
Moreover, the biotech firm said its deal to supply Covid-19 vaccines to the U.K. was slashed to 7.5M conditional doses from the previous 15M doses after it failed to secure a supportive recommendation from the U.K. Joint Committee on Vaccination and Immunisation by November 30.
As a result, Novavax is forced to repay $112.5M pertaining to the upfront payment previously received from the U.K.
Despite this development, Novavax reiterated its full-year forecast for revenue of $2 billion.
