.July 30, 2024 11:57:00 AM

Novavax (NASDAQ:NVAX) saw a sharp 26% drop in shares today following a downgrade from JPMorgan analysts from Neutral to Underweight. The stock had surged 267% after announcing a partnership with Sanofi for its COVID-19 vaccine, Nuvaxovid, on May 10, with a $500 million upfront payment boosting financial stability.

Despite the potential of combination COVID-19 and flu vaccines (CICs) to expand the respiratory vaccine market, analysts are cautious. They predict lower demand for COVID-19 vaccines compared to flu vaccines, leading to a more conservative outlook on Novavax’s revenue potential.

The development of CIC candidates is seen as a strategy to either replace declining COVID-19 revenue or protect existing flu vaccine markets. This tempered perspective contributed to the analysts’ decision to downgrade the stock, highlighting concerns about Novavax’s future revenue streams.