Novavax near historic lows caused by weak outllook and financial challenges 📉

Novavax (NVAX.US), the maker of Nuvaxovid, an anti-covid-19 drug, had been experiencing strong revenues over the past few years, but these ended with the passing of the pandemic and were replaced by financial challenges.  The company has not vavax kept up with its anti-covid product with 'faster competition' which has dominated the market faster with mRNA vaccines. Yesterday, Novavax warned that it may not survive in the current environment, prompting a panicked reaction from investors.

Shares of Moderna (MRNA.US), Pfizer (PFE.US) and Biontech (BNTX.US) have also fallen in recent bottoms as Wall Street begins to worry that results from the pandemic will become impossible to repeat in the coming years.

• Novavax indicates that future sales as well as funding for the business from the US government remain highly uncertain;
• The company has nearly $1.3 billion in cash but spent $182 million in the fourth quarter and $658 million through 2022;
• Despite the weaker outlook, CEO John Jacobs that, based on its existing foundation, the company has potential for the future although it faces big challenges
• The company needs to deliver a competitive product for the 2023 vaccination season, reduce the rate at which it burns cash, better manage cash flow and most importantly - expand its offer and sales beyond just Nuvaxovid which, however, will require money and time.

Novavax (NVAX.US) shares, W1 interval. Source: xStation5