In 2020, Moderna (MRNA) and Novavax (NVAX) both soared to incredible highs. BioNTech (BNTX) which, like Moderna, made mRNA-based vaccines, also rose. In the last month, Novavax faltered in a big way.
NVAX stock lost half its value in a month. It lost over 90% YTD. Novavax failed because Moderna and BioNTech both released a Covid product to the market. They are among many firms that accelerated product development with the help of Operation Warp Speed.
Biotech investors are bracing for slower Covid vaccines. Still, Moderna has a promising mRNA platform. It may scale its operations to design vaccines for many other diseases.
Novavax failed its investors in two ways. On Nov. 22, the company ended a vaccine deal with its now former contract partner, Gavi Alliance. Novavax claims that Gavi’s breach of the APA failed to procure 350 million doses.
Novavax will keep the $700 million in advance payments Gavi made to it.
On Dec. 14, 2022, Novavax said it would sell up to $125 million of shares. On Dec. 16, 2022, it offered to sell $65 million and $150 million in debt.
Novavax is burning away investor money. The stock will likely punish investors who speculate on it from here.
