It’s been a horrendous stretch for Novavax (NASDAQ:NVAX) stock, and it’s not getting any better on Wednesday. Shares of NVAX stock are down 6.5% today. If it ends lower this week, it will mark the stock’s fourth straight weekly decline. Currently, it’s down almost 50% amid that stretch.
So what’s driving the recent losses?
On Wednesday, the U.S. Food and Drug Administration (FDA) approved omicron-specific booster shots from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA). The new booster shots are expected to hit the market after Labor Day weekend. However, the U.S. Centers for Disease Control and Prevention (CDC) has to sign off the new boosters in order for pharmacies to administer them. The CDC will be reviewing the recent data on Thursday and Friday of this week and then making its call.
According to CNBC, “It is the first time the FDA has authorized an updated vaccine formula since the shots started in December 2020.”
That news has investors fearing that Novavax may be too late to the Covid-vaccine game. And in reality, that may be the case.
If Novavax Is Too Late, What Does That Mean for NVAX Stock?
The news not only deals a blow to Novavax’s future potential, but it’s also weighing on NVAX stock. Shares are hitting new 52-week lows on the news, which is never a good sign. That’s particularly true as we trudge through a bear market.
In July, the company finally received emergency use authorization (EUA) approval from the FDA for its two-shot Covid vaccine for adults. In August, it was authorized for adolescents as well.
However, we’re halfway through 2022, when several other vaccines have been available now for more than 18 months. That’s a pretty late arrival for Novavax. As such, it’s no surprise that NVAX stock is down 76.9% this year and is down almost 90% from the highs.
The fear with Novavax is its path forward from here.
When the company reported earnings in early August, Novavax badly missed earnings and revenue expectations. Further, it nearly slashed its full-year revenue outlook in half. With momentum drowning on the vaccine front, investors worry about the business going forward. Now that Pfizer and Moderna are adding more boosters to their lineup, the concern becomes even larger for Novavax.
With the stock now at 52-week lows, today’s news may be new, but Novavax’s struggles are not.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.