Novavax, Inc. (NASDAQ:NVAX) is going to have one heck of a hangover in the morning. Shares of the biotech plummeted after the close Thursday, falling 84% on disappointing vaccine trial data.
The vaccine in question is Resolve, a treatment for respiratory syncytial virus. RSV is a respiratory disease that in some cases may lead to death. It is infectious, causing some 2.5 million infections per year.
The recent trial took place over 60 different sites across the U.S., with the goal of demonstrating efficacy. Basically, Resolve had to show more than a fighting chance at preventing RSV in moderate-to-severe cases.
It did not.
Data from the Resolve phase 3 trial reportedly failed to meet pre-specified criteria. Therefore, it did not show vaccine efficacy, and the market reacted by selling NVAX in droves. This tweet puts it best:
If you own $NVAX now is a good time to call the wife and let her know junior won’t be going to college
— Dennis Gartman (@gartmanreport) September 15, 2016
Novavax senior vice president of R&D had this to say:
“We are both surprised and disappointed by the outcome of the Resolve trial, which we recently unblinded. Our initial analyses and review of the key aspects of the trial do not indicate issues with trial execution, data collection, data integrity, or drug product quality. We expect to have preliminary immunogenicity data in the coming weeks to further our understanding of the trial results.”
Before the close, NVAX stock was trading for $8.34 a share. Now it’s going for a buck and some change. That $14 price target is looking a lot less likely now.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.