Novavax, Inc.(NASDAQ:NVAX) recently recorded a high profile disappointment in its pursuit to advance an RSV vaccine. This has released around $1.6 billion in capital in the segment, which will be eyeing for an alternate allocation. There are many companies working on vaccines, and out of this list VBI Vaccines is considered as promising.
September has been a bumpy month for Novavax and its shareholders. The company has spent a major part of the last five years in the mid to late phase advancement of its lead candidate, ‘RSV-F’. This medication is targeted at the RSV virus, which comes in the list of common seasonal diseases that results in respiratory symptoms in people. While physiologically it’s different, it can be considered as a type of flu with no vaccine.
The market for this vaccine is big, as analysts expect it become a $2.3 billion industry globally by 2024. Also, the market in the U.S. can account for over $1 billion of these anticipated sales. Unfortunately, an FDA permitted vaccine has failed to emerge. Novavax followers thought this was about to transform.
A Phase II confirmed what appeared to be convincing evidence of effectiveness for the firm’s vaccine candidate, and depending on the Phase II report, Novavax, jolted a big scale pivotal. The pivotal sloped RSV-F contrary to placebo, and the former arm essentially outpaced the former. Novavax management has recommended that the inconsistency between Phase 2 and Phase 3 originates from a theoretical weak RSV season. Regardless, the company is pitching to recreate the Phase 3 during the imminent season and witness if it can eek out some efficacy in a group of patients.
Novavax issue has demonstrated there is significant market interest in a firm that can get an RSV vaccine to current market. Before the biotech company reported its failure, it held a market capitalization of more than $2.2 billion, which post-announcement stands at $640 million. It $1.6 billion that was earlier piling on an RSV achievement looking for a ground, and for investors, there’s a chance to get in to a new RSV exposure in hope of this reallocation.