Novavax, Inc. (NASDAQ: NVAX) is having a horrible start to the trading session this morning, and for good reason. The company provided results from a Phase 3 trial that missed the mark, upsetting investors and sending the stock tumbling. Today, we’ll talk about:
- The data;
- what we’re seeing from NVAX stock as a result; and
- what we’ll be watching for ahead.
NVAX Is Tumbling On Trial Failure
As mentioned above, Novavax is having a rough start to the trading session in the pre-market hours this morning after announcing clinical results. The results came from the Phase 3 Prepare trial.
During the trial, NVAX was evaluating ResVax. The treatment is an aluminum-adjuvanted respiratory syncytial viras (RSV) fusion protein recombinant nanopartical vaccine. The vaccine was designed to protect infants from RSV via maternal immunization.
Unfortunately, the company failed to meet the primary endpoint on the trial. The goal for NVAX was to sufficiently separate from placebo as measured by the incidence of RSV lower respiratory tract infection through 90 days of life.
While the company did not provide placebo incidence rates, the incidence of medically significant RSV LRTI in the treatment arm was 39%. The company will be hosting a conference call today to discuss the results.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Novavax, the news proved to be overwhelmingly negative. After all, the failure of the ResVax trial means that the company will have to go back to the drawing board yet again with this asset.
So, it’s not surprising to see that upset investors are sending the stock tumbling in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (8:17), NVAX is trading at $0.88 per share after a loss of $1.25 per share or 58.73% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NVAX. In particular, we’re interested in following the company’s goals following the ResVax trial failure. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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