(Bloomberg) — Waning interest in Covid-19 vaccines has left a long-standing drug developer, Novavax Inc., struggling to stay afloat and handed short sellers a windfall.
Most Read from Bloomberg
Israel’s Window to Strike Iran Narrows as Putin Enters Equation
Tycoon Deripaska Warns Russia May Run Out of Money in 2024
Sorry, Twitter. Elon Found His Next Shiny Object.
Americans Need to Be Richer Than Ever to Buy Their First Home
US Stocks Snap Two Days of Losses; Yields Rise: Markets Wrap
Bets against the company have earned shorts about $2.7 billion from the stock’s 2021 zenith through Wednesday, S3 Partners compiled data show. It’s also the most profitable short among biotechs since the stock hit a peak at the height of the outbreak, according to Matthew Unterman, a director with S3.
Novavax’s dramatic rout is emblematic of the dwindling demand for pandemic protection.
The over 30-year-old biotech soared amid the lucrative race to develop a vaccine, which gave it an opportunity to quickly get a product on the market, but fell behind other jab developers. The US market would come to be dominated by the shots developed by Moderna Inc. and the partnership of Pfizer Inc. and BioNTech SE. Novavax finally won emergency use authorization from US regulators last year, and has since faced disappointing uptake.
“It’s a very difficult moment for the company even after a much needed change of leadership,” says Max Nisen, senior associate analyst at Bloomberg Intelligence. “They have significant expenses after attempting to build global manufacturing capacity and keep up with Pfizer/BioNTech and Moderna, a dwindling cash pile and highly uncertain revenue prospects.”
In 2021, the pandemic and a frothy biotech-sector rally drove the Gaithersburg, Maryland-based company’s market value over $20 billion. The stock now trades at a fraction of that value and a warning from Novavax about its ability to stay in business this week has only deepened its woes.
Shares dropped 26% on Wednesday after the company flagged doubts over 2023 sales of its shot, taking the stock that once traded above $300 to below $7 per share. Its quarterly loss was also wider than analysts expected. The company declined to comment on its stock price. Shares rose 1% on Thursday, while the stock’s price has dropped by about a third to start the year.
With short interest amounting to more than a third of the stock’s float, according to data from S3 Partners and Bloomberg, it’s among the highest levels in the sector.
Novavax is not the only Covid-19 vaccine stock that’s taking a hit as concern around the pandemic wanes. Moderna Inc. is down about 72% from its 2021 record high, and had been the most profitable US-listed short through the first two months of 2023, according to Unterman.
(Updates with Thursday trading.)
Most Read from Bloomberg Businessweek
FBI Documents Show Leonardo DiCaprio, Kim Kardashian Grilled for 1MDB Secrets
Female Execs Are Exhausted, Frustrated and Heading for the Exits
Microsoft Expands Game Pass as Regulators Fret Over Activision Deal
Russian Airlines Are Flying High Despite Sanctions
Gina Raimondo Becomes China Player in a Job Where Her Predecessor Used to Nap
©2023 Bloomberg L.P.
Related Quotes
(Bloomberg) — Citigroup Inc. is cutting hundreds of jobs across the company, with the Wall Street giant’s investment banking division among those affected.Most Read from BloombergIsrael’s Window to Strike Iran Narrows as Putin Enters EquationTycoon Deripaska Warns Russia May Run Out of Money in 2024Sorry, Twitter. Elon Found His Next Shiny Object.Americans Need to Be Richer Than Ever to Buy Their First HomeUS Stocks Snap Two Days of Losses; Yields Rise: Markets WrapThe cuts amount to less than
(Bloomberg) — It’s a no-brainer arbitrage trade: Pocket the $5 gap in AMC Entertainment Holdings Inc.’s proposed conversion of preferred stock into common shares. However, Wall Street pros are discovering the bet is anything but easy to pull off.Most Read from BloombergSorry, Twitter. Elon Found His Next Shiny Object.How to Get a Free Flight to Hong Kong in 500,000 Airline Ticket GiveawayWorld’s Rich Take Advantage as $1 Trillion Property Market CratersMusk Was Right About Tesla Rivals Losing B
Raymond James analyst Srini Pajjuri is highlighting semiconductor stocks that should benefit from a turnaround in this key industry. The firm has Strong Buy ratings on Nvidia and AMD and Outperform ratings on Intel, Marvell, and Qorvo. Pajjuri said during the last three upturns, the semiconductor sector has outperformed the S&P 500 by 30% to 50% over a one- to two-year period.
(Bloomberg) — China’s households may plow as much as 600 billion yuan ($86.8 billion) of excess savings into the nation’s stock market, driving the next leg of the rally, according to UBS Group AG.Most Read from BloombergSorry, Twitter. Elon Found His Next Shiny Object.How to Get a Free Flight to Hong Kong in 500,000 Airline Ticket GiveawayWorld’s Rich Take Advantage as $1 Trillion Property Market CratersTycoon Deripaska Warns Russia May Run Out of Money in 2024The potential upside is “signific
Novavax warns of uncertain 2023 outlook as COVID-19 market turns commercial and new CEO calls for pipeline assessment.
Everybody knows now, the energy sector was the place to be last year as the segment was an outlier and one of the few to sidestep 2022’s market carnage. Fueled by rising energy prices amidst Russia’s invasion of Ukraine, overall, energy stocks significantly beat the market. For those mourning a missed opportunity, ‘Shark Tank’ star Kevin O’Leary thinks opportunities in the segment are still abundant. “I love energy. Everybody hates energy… Go where people hate it. Energy is the driving pivot.” O
Do you love dividends? Of course you do — and rightly so! Scholars who study the stock market’s historical performance estimate that over time, the payment (and reinvestment, and compounding) of dividends have contributed anywhere from 30% to 90% of the S&P 500’s total returns. Simply put, if you’re not investing in dividend stocks, you’re doing it wrong. Using the TipRanks platform, we’ve looked up two stocks that are offering dividends of at least 11% yield – that’s almost 6x higher the averag
For more than a year now, the markets have been preoccupied by the Fed with the focus squarely on inflation’s trajectory and the central bank’s counter measures of rising interest rates. “With this in mind,” says Larry Adam, Chief Investment Officer at Raymond James, “it is understandable that the market is analyzing every development in these two dynamics within the framework of what it means for the Fed.” However, with the spotlight turned solely on those factors, Adam thinks increasingly prom
The asset management giant and prolific real estate investor sought an extension from the bondholders to repay the debt, but they voted against it, the report said on Thursday, citing people familiar with the matter. Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water.
C3.ai, Inc. (AI) delivered earnings and revenue surprises of 72.73% and 4.35%, respectively, for the quarter ended January 2023. Do the numbers hold clues to what lies ahead for the stock?
The Oracle of Omaha never saw a future in cryptocurrency.
Stocks moving in after-hours: C3.ai, Dell, Costco, Nordstrom
ChargePoint Holdings, Inc. (CHPT) delivered earnings and revenue surprises of 18.75% and 6.99%, respectively, for the quarter ended January 2023. Do the numbers hold clues to what lies ahead for the stock?
Shares of C3.ai were surging in after-hours action Thursday after the AI software company cited "substantially improving" market sentiment in earnings report.
Semiconductor stocks have seen strong demand recently as the global economy has shown resiliency in the face of inflation and rising rates. IBD's chip designers industry group has been hot, ranked No. 15 out of 197 industries. The group's top-ranked stock, Impinj, is in focus, boasting impressive growth that is only set to continue.
Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a … Continue reading → The post How Much Interest Can You Earn on $1 million? appeared first on SmartAsset Blog.
Zacks.com users have recently been watching Johnson & Johnson (JNJ) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
(Bloomberg) — US stocks closed Thursday’s session higher, reversing course after Federal Reserve Bank of Atlanta President Raphael Bostic said the central bank could be in a position to pause rate hikes sometime this summer. Treasuries dropped, with yields across the curve piercing 4%. Most Read from BloombergIsrael’s Window to Strike Iran Narrows as Putin Enters EquationTycoon Deripaska Warns Russia May Run Out of Money in 2024Sorry, Twitter. Elon Found His Next Shiny Object.Americans Need to
Chipmakers Broadcom and Marvell Technology reported quarterly results late Thursday. AVGO stock rose and MRVL stock fell on the news.
Based on the average brokerage recommendation (ABR), SoFi Technologies, Inc. (SOFI) should be added to one's portfolio. Wall Street analysts' overly optimistic recommendations cast doubt on the effectiveness of this highly sought-after metric. So, is the stock worth buying?