Novavax, Inc. (NASDAQ: NVAX), GlaxoSmithKline PLC (NYSE: GSK) – Break Novavax’s Coronavirus Vaccine Data: 2 analysts take

Novavax, Inc. (NASDAQ: NVAX) shares roared higher on Friday after the company reported the results of the latest stage of the coronavirus vaccine candidate in the UK.

The Novavax Analyst: HC Wainwright analyst Vernon Bernardino repeated a buy rating and $ 207 price target for Novavax shares.

Regulatory news from Novavax as a positive catalyst: Novavax’s NVX-CoV2373 is now on track to become the fifth COVID-19 vaccine, and after a positive outcome of the ongoing Phase 3 trial in the US and Mexico, possibly the fourth in the US, HC Wainwright -analyst. Bernardino said in a note.

The protein-based vaccine candidate showed 96% efficacy against the original SARS-CoV-2 strain and 86% efficacy against the emerging UK strain, the analyst said.

Given the phase 2b study done in South Africa against an emerging tribe, it has shown lower efficacy, he said.

Bernardino picked up the lower effectiveness data of the South African trial.

“However, we consider the South African studies to be positive, as they indicate positive implications regarding the potential for Novavax’s vaccines to provide cross – protection, as observed with NanoFlu, the company’s investigative quadrival seasonal flu vaccine.”

With data from Phase 1, 2 and 3 trials involving more than 20,000 participants, Novavax is in a strong position to obtain authorization for the use of NVX-CoV2373 in the UK, Bernardino said.

The analyst said the company had launched an ongoing submission for the vaccine candidate in the UK.

Regulatory updates could be positive catalysts in the first quarter of 2021, he said.

Bernardino expects a possible interim analysis of PREVENT-19 Phase 3 trial in early February in the US and Mexico, and a possible final analysis as early as the end of February 2021.

“NVX-CoV2373, which Novavax expects to be ready for use in liquid formulation, is stable under refrigeration conditions (2 ° C to 8 ° C), allowing the use of existing channels for vaccine supply channels,” the analyst said.

The company has manufacturing and supply transactions in eight geographic areas around the world and has an annual capacity of more than 2 billion doses that the company would expect by mid-2021, he said.

HC Wainwright said the scope and robustness of Novavax’s strategy to be the leader in COVID-19 vaccines is still not appreciated.

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Less inspiring South African data a setback: The effectiveness of the vaccine against the new variant in South Africa – B1.351 – could have been between 55% -65%, said Geoffrey Porges, analyst at SVB Leerink.

“Reducing efficacy against the variant virus is a major blow to any plans for the vaccines to bring about herd immunity to the virus in the immediate future,” the analyst said.

However, the vaccine candidate should not be considered ‘not clinically useful’ against the variant, given an acceptable safety profile and evidence of the effective reduction of serious diseases, he said.

For Novavax, the data is a huge success, despite the worrying effects of B1.351 and similar variants, the analyst said. The company validated their platform and confirmed the promise through their very high titer antibodies and robust T-cell responses in animals and earlier human trials, Porges said.

“They have a clear path to the approval and commercial sale of their first product, and given their favorable product characteristics, it should find widespread purchases and acceptances.”

Finally, Novavax is well positioned to develop a combined multivalent influenza / COVID-19 vaccine, and according to SVB Leerink, this may be the most compelling commercial opportunity in the long term.

The firm also sees a positive reading for other vaccine developers for protein subunits such as Sanofi SA (NASDAQ: SNY) / GlaxoSmithKline plc (NYSE: GSK), despite the need to use new antigen for their programs.

NVAX price action: Novavax shares rose 66.2% to $ 222.73 with the last check.

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