On Thursday, it was reported that Novavax (NASDAQ:NVAX)'s updated version of the vaccine is still under review by the U.S. Food and Drug Administration (FDA), while updated vaccines from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) have already received approval. This could potentially affect Novavax's market position if its competitors' products are introduced first for the upcoming fall vaccination season. The timing of the launch is seen as critical; a delay measured in weeks rather than days could significantly disadvantage Novavax.
Novavax, an early contender in the COVID-19 vaccine race, has been struggling to catch up with rivals Pfizer and Moderna. The company, whose shares soared by over 2,700% in 2020, has experienced a decline in share value due to delays in launching its vaccine. This delay has also resulted in a significant loss of potential revenue.
The introduction of Novavax's vaccine came approximately 18 months after the offerings from Pfizer and Moderna, missing the initial rush for vaccinations. This late entry has hampered the company's ability to secure a significant market share. The company's vaccine uses a proven protein subunit technology similar to that used in the hepatitis B vaccine.
The Centers for Disease Control and Prevention have already endorsed the updated Pfizer and Moderna vaccines for individuals as young as six months, with vaccinations potentially starting this week.
Novavax initiated a comprehensive restructuring plan earlier this year in response to lower-than-expected vaccine revenues. The plan involves reducing its workforce by 25% with an aim to cut costs by up to 50% next year compared to last year's levels.
Despite these challenges, Novavax generated nearly $2 billion in revenue last year from its vaccine and is currently working on an updated version for the fall season. The company is also advancing on a combined coronavirus/flu vaccine candidate that has shown promising results in clinical trials.
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