Disappointing RSV-F Vaccine trial results came to haunt Novavax, Inc. (NASDAQ:NVAX) as the stock shed more than 80% in market value after hours of trading on Friday. In a press release, the biotechnology company said the vaccine did not meet its primary goals on the treatment of respiratory tract disease.
Disappointing Clinical Results
The immunization, which became the first vaccine after 50 years of trying, failed to meet its primary and secondary endpoint in a trial carried out on 11,850 patients. The crash on Friday did not come as a surprise given that such news most of the time spooks investors fuelling a sell-off.
“We are both surprised and disappointed by the outcome” of the Resolve Phase 3 trial of the vaccine, which included people at least 60 years of age, the company said.
The outcome of the trial now arouses serious questions about Novavax prospects given the waning investors’ confidence. A slump of more than 50% is not a usual occurrence but something that could continue to dent the stock’s sentiments among investors.
Complicating the current standoff is the fact that initial analysis and review does not indicate problems with trial execution, data collection or data integrity.
RSV-F Vaccine Prospects
Investors with stakes in the company could take heart from the fact that even with the big mis Novavax has not yet shown signs of throwing in the towel. Chief Research and development officer Gregory Glenn has blamed the negative results on unusually low seasonal RSV attack rates during the Phase 3 trial.
It is highly unlikely that the RSV F vaccine will gain the much-needed regulatory approval as it stands, given the Phase 3 trial setback. While the disease burden associated with the RSV F vaccine is still big given that it is the second-leading cause of death in children under 1-year-old, Novavax still has a long way to impress regulators.
RSV Vaccine boasts of peak revenue potential of between $6 billion and $8 billion something that should give Novavax, Inc. (NASDAQ:NVAX) the much-needed reason to pursue further trials.