Shah Capital, the second-largest shareholder of Novavax, is pushing for strategic changes, including a potential sale, due to weak COVID-19 vaccine sales. The fund may launch a proxy fight if no progress is made within four months. Despite belief in Novavax’s science, the fund is frustrated by its low market share.

Activist investor Shah Capital questions Novavax’s competence or performance, citing disappointing sales. Novavax’s vaccine only sold 120,000 doses compared to competitors’ 14.5 million, leaving its market share at 0.8%. The fund highlights a disconnect between potential and execution, urging for change.

Shah Capital values Novavax at $5 billion to $10 billion, while its market capitalization is $1.21 billion. The fund urges the board to evaluate a sale and hire an investment bank. Potential buyers named include Sanofi, Merck, GSK, and AstraZeneca, though no contact has been made. Novavax recently pushed back its profitability target to 2028.

Read more at Yahoo Finance: Shah Capital pushes for Novavax sale, warns of proxy fight