Why Novavax Stock Is Plunging Again Today
Shares of Novavax (NASDAQ: NVAX) were plunging for a second consecutive day on Wednesday and were down 14.1% as of 12:24 p.m. ET. Today's downturn is a continuation of a sell-off stemming from investors' worries about sales of Novavax's COVID-19 vaccine.
The company missed Wall Street's estimates with its first-quarter results. It maintained its full-year 2022 revenue guidance of between $4 billion and $5 billion. However, it also noted that Gavi, an alliance focused on distributing COVID vaccines to low- and middle-income countries, is seeking to revise the number of doses ordered and the timing for shipment.
There is a reason for concern about Novavax's ability to meet its 2022 revenue guidance. So far, the company hasn't received any orders from Gavi. Some countries are experiencing a supply glut of vaccine doses. Gavi's desire to change the terms of its deal with Novavax is a reflection of this.
Source Fool.com
