It is predicted that the stock would lose value of almost 90% this year

Investors gambled on Novavax Inc. (NVAX) as a coronavirus vaccine winner in the early days of the pandemic. In just one year, the stock increased by a mind-boggling 2,700%.
By: Medical Infralytix Pvt Ltd
 
CHAM, Switzerland - April 25, 2023 - PRLog -- NVAX's vaccine has now been commercialized, and it has just been approved for use as a booster. With its shares down over 90% this year, you may be asking if Novavax is a good investment. Should you avoid this faltering stock because of its late arrival onto the vaccine scene?

NVAX clearly lost out on the peak of the pandemic income opportunity. About a year ago, the company's vaccine received approval in a few nations. That's a year after market giants Pfizer Inc. (PFE) and Moderna Inc. (MRNA) entered. The vaccine from NVAX was only just approved in the United States in July.

As a result, NVAX's income has been significantly lower than that of fellow biotech MRNA. Both MRNA and NVAX are easy to compare because they both sell the same product: the Coronavirus vaccination.

It's also reasonable to expect revenue opportunities to fall from peak levels. Most individuals who desired immunizations had them previously. When the pandemic becomes an endemic problem, there will be much less urgency to be vaccinated.

However, the chance is not finished. In the future, the annual booster market will be a consistent source of revenue. The size of the global market will be determined by the cost of vaccine doses and the number of people vaccinated. According to MRNA, the market size will be like that of the flu and could range anywhere from $8 billion to $32 billion.

So, the bad news is that NVAX lost out on a moment when firms might produce large amounts of income in a short period of time. The good news is that NVAX can still compete in the long-term vaccination market and potentially produce large yearly income.

NVAX expects a total revenue of $2 billion this year. Because the business joined the market later in the pandemic, it may experience less of a reduction in vaccine income than today's vaccine leaders. This suggests that the revenue story may become more stable in the future.

Today, the vaccination provides NVAX with a source of product income. That's a good thing. Still, I wouldn't buy NVAX stock only for its position in the coronavirus vaccine market today. It is vital to consider the long-term potential.

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