Today was huge for Novavax (NASDAQ:NVAX), as the vaccine producer revealed a new deal with Sanofi (NASDAQ:SNY). The move was an unqualified winner as far as shareholders were concerned, who sent shares up almost 49% in the closing minutes of Monday’s trading.
Things at Novavax weren’t looking too good until a new deal valued in the billions landed for Novavax with France’s Sanofi. In fact, the deal was sufficiently strong to allow Novavax to remove its “going concern” warning, which had been in place since February of 2023. The move called for Sanofi to acquire less than 5% of Novavax but, in so doing, would drop around $500 million on it, and that’s for starters. There will be milestone payments to come, assuming Novavax can meet a few conditions.
Gains Piling On
The nearly 50% surge in Monday’s trading came on top of earlier gains realized on Friday when the word first emerged. Yet, it’s easy to wonder what drew Sanofi into such a deal; it’s planning to market Novavax’s COVID-19 vaccine worldwide, but most regard COVID-19 as a defeated foe at this point. Most people who wanted the vaccine have already taken it, and both Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) are looking for new drugs to replace that revenue stream.
What Is the Prediction for Novavax Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NVAX stock based on two Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 63.5% rally in its share price over the past year, the average NVAX price target of $11.75 per share implies 10.34% downside risk.
