Novavax delaysNovavax is down just under 14%, taking a massive hit after the company delays its COVID vaccine timeline in the face of raw material shortages.
On Monday, the biotech company once again pushed back the timeline for its vaccine production and said that it’s not expecting to seek regulatory authorization for the shot in the U.S., U.K., or Europe until at least Q3. Prices fell just under 9% on the day and kept on going.
This isn't the first time investors have been disappointed by a vaccine production delay either, having already faced the pushback of production forecasts and obstacles relating to access to raw materials and equipment in the past few months, all of which cost the company significant supply contracts. Back in January, Novavax had plans to produce 150 million shots per month by May/June, but it now looks like that target won't be reached until Q4 at least. It also previously said that it hoped to be seeking U.S. regulatory authorization by May, so things aren’t looking so hot.
Vaccine stocks have struggled in the past few days after President Joe Biden threw his support behind waiving patent rights for COVID-19 vaccines. For a few months now, advocates for waiving intellectual property rights have argued that the move is crucial as low and middle income countries have been left without vaccine shipments that richer nations have scooped up. While the Western world has been enjoying a decline in cases as vaccine rollouts have expanded, 36 other countries are still facing a catastrophic COVID crisis. Unsurprisingly though, the pharma firms are against it. The Pfizer CEO posted posted a public letter on LinkedIn warning that waiving patent protections would only exacerbate the raw material shortage - setting off a race for vaccine ingredients that could impact the safety of vaccines themselves. But then, he would say that. Either way, share prices aren’t doing well out of the debate.