Novavax, Inc. (NASDAQ: NVAX), GlaxoSmithKline PLC (NYSE: GSK) – Analyzing Novavax Coronavirus Vaccine Data: 2 Taken by Analyst

Novavax, Inc. (NASDAQ: NVAX) Shares were growing on Friday after the company reported first-line results from the final stage test of its candidate coronavirus vaccine in the UK

The Novavax Analyst: Vernon Bernardino, an analyst at HC Wainwright, reiterated a buy rating and a target price of $ 207 for Novavax shares.

Novavax Regulatory News as a positive catalyst: Novavax’s NVX-CoV2373 is now firmly aligned to become the fifth authorized COVID-19 vaccine, and following a positive result from the PREVENT-19 Phase 3 study underway in the U.S. and Mexico, potentially the fourth authorized in the U.S., HC analyst Wainwright Bernardino said in a note.

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

Data from the Phase 2b study conducted in South Africa against an emerging strain showed less efficacy, he said.

Bernardino ignored the lower effectiveness data from the South African study.

“However, we consider the studies in South Africa to be positive as they point to positive implications regarding the potential of Novavax vaccines to provide cross-protection, as was seen with NanoFlu, the company’s quadrivalent seasonal influenza vaccine.

With Phase 1, 2 and 3 test data that involved more than 20,000 participants, Novavax is in a strong position to obtain authorization for the use of NVX-CoV2373 in the United Kingdom, said Bernardino.

The company started an ongoing presentation for the vaccine candidate in the UK, the analyst said.

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

Bernardino expects a potential interim analysis of the PREVENT-19 Phase 3 trial being conducted in the United States and Mexico in early February and a potential final analysis as early as the end of February 2021.

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

The company has manufacturing and supply businesses in eight geographies around the world and an annual capacity of more than 2 billion doses that the company expects to have in place in mid-2021, he said.

HC Wainwright said that the scope and robustness of Novavax’s strategy to be the leader in COVID-19 vaccines remains underestimated.

Related link: The Daily Biotech Pulse: Novavax Vaccine Readout, Clinical Hold On Bellicum Study Lifted, Lilly Earnings, NLS Pharma IPO

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

“Reducing effectiveness against the variant virus is a major blow to any vaccine plans to achieve collective immunity in the immediate future against the virus,” said the analyst.

However, the vaccine candidate should not be considered “non-clinically useful” against the variant, given a tolerable safety profile and evidence of an effective reduction of serious illness, he said.

For Novavax, the data represents tremendous success, despite the alarming implications of B1.351 and similar variants, the analyst said. The company validated its platform and confirmed the promise shown by its very high antibody titer and robust T-cell responses in animals and previous tests in humans, said Porges.

“They have a clear path for the commercial approval and sale of their first product and, given the favorable characteristics of the product, they should have a widespread purchase and adoption.”

Ultimately, Novavax is well positioned to develop a combined multivalent influenza / COVID-19 vaccine, and this could be its most attractive long-term business opportunity, according to SVB Leerink.

The company also sees a positive reading for other developers of protein subunit vaccines, such as Sanofi SA (NASDAQ: SNY) / GlaxoSmithKline plc (NYSE: GSK), despite the need to use a new antigen for its programs.

NVAX price action: Novavax shares were up 66.2% to $ 222.73 on the last check.

Related link: The Week Ahead In Biotech (Jan 24-30): J&J, Lilly to Kickstart Big Pharma Earnings, Amgen FDA Decision and More