Markets

Novavax's Respiratory Vaccine Study Data Fail to Impress

Novavax, Inc. 's NVAX shares tumbled 21.4% following the company's announcement of top-line data from a randomized, blinded, placebo-controlled phase II study on RSV F Vaccine for protecting infants via maternal immunization.

The study evaluated the safety and immunogenicity of RSV F Vaccine in healthy pregnant women. It also studied the trans-placental transfer of maternal antibodies induced by the vaccine, the impact of maternal immunization on infant safety during the first year of life, and RSV-specific antibody levels through the first six months of an infant's life.

The company stated that patients treated with RSV F Vaccine showed increased levels of antibodies, compared to insignificant change in the antibody levels of patients on placebo.

We note that Novavax stated that the first few months of the lives of infants are crucial since during this period they are the most vulnerable to RSV. However, investors may argue that the effect of the study results were not concrete enough to invoke demand for the vaccine by both patients and doctors. Benefits derived from the product may not be adequate to protect children from the impacts of the disease.

Meanwhile, Novavax is planning to advance the maternal immunization program to phase III development during the first quarter of 2016. The company has been awarded a grant of up to $89 million by the Bill & Melinda Gates Foundation in support of a phase III program for pregnant women on the RSV F Vaccine. The grant will also support the company's regulatory licensing efforts, thereby paving the path for WHO prequalification.

Additionally, the company announced positive top-line data from a phase I study evaluating the safety and immunogenicity of RSV F Vaccine (with or without aluminum phosphate adjuvant) in healthy patients aged 2 years - 6 years. The study showed that the vaccine has the potential to be both safe and immunogenic in the patient population.

Novavax carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Regeneron Pharmaceuticals, Inc. REGN , Corcept Therapeutics Incorporated CORT and Acceleron Pharma, Inc. XLRN . While Regeneron and Corcept carry a Zacks Rank #1 (Strong Buy), Acceleron holds a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

REGENERON PHARM (REGN): Free Stock Analysis Report

CORCEPT THERAPT (CORT): Free Stock Analysis Report

NOVAVAX INC (NVAX): Free Stock Analysis Report

ACCELERON PHARM (XLRN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CORT XLRN REGN NVAX

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More