Novavax, Inc. (NVAX) Misled Shareholders Regarding Approval of its COVID Vaccine
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Novavax, Inc. (NASDAQ: NVAX) securities between March 2, 2021 and October 19, 2021, for violations of the Securities Exchange Act of 1934. Novavax is a biotechnology company that focuses on the discovery, development, and commercialization of vaccines to prevent serious infectious diseases. The Company’s product candidates include NVX-CoV2373, which is in development as a vaccine for COVID-19.
According to the complaint, prior to March 2, 2021, Novavax announced it planned to complete Emergency Use Authorization (“EUA”) submissions for NVX-CoV2373 with the U.S. Food and Drug Commission in the second quarter of 2021. Further, during the relevant period, defendants made materially false and misleading statements and failed to disclose that: (i) Novavax overstated its manufacturing capabilities and downplayed manufacturing issues that would impact its approval timeline for NVX-CoV2373; (ii) as a result, Novavax was unlikely to meet its anticipated EUA regulatory timelines for NVX-CoV2373; and (iii) therefore, the Company overstated the regulatory and commercial prospects for NVX-CoV2373.
On May 10, 2021, Novavax confirmed it was unlikely to seek EUA for NVX-CoV2373 in the U.S. until July 2021 at the earliest, the Company’s third quarter of 2021. Following this disclosure, Novavax’s stock price fell over $37.00 over the next two trading days. Then, on August 5, 2021, Novavax reported it expected to file for NVX-CoV2373’s EUA in the fourth quarter of 2021. On this news, the Company’s stock price fell $46.31 per share, or 19.16%, to close at $189.89 per share on August 6, 2021. Finally, on October 19, 2021, Politico published an article reporting that Novavax “faces significant hurdles in proving it can manufacture a shot that meets regulators’ quality standards” with respect to NVX-CoV2737. The article cited anonymous sources as stating that Novavax’s “issues are more concerning than previously understood” and that the Company could take until the end of 2022 to resolve its manufacturing issues and win regulatory authorizations and approvals. On this news, Novavax’s stock price fell $23.69 per share, to close at $136.86 per share on October 20, 2021.
Novavax, Inc. (NVAX) shareholders have legal options. All representation is on a contingency fee basis. Shareholders pay no fees or expenses.