NVAX – A Novel Pure Play Vaccine Company
Analysts at Piper Jaffray initiate coverage of Novavax (NASDAQ: NVAX) with an “overweight” rating. The target price for NVAX is set to $4.50.
According to Piper Jaffray, Novavax has been developing vaccines against seasonal and pandemic influenza by employing the unique VLP (Virus Like Particle) technology. This technology helps in the faster development of vaccines and cheaper production than in the case of conventional technologies.
NVAX has entered into strategic partnerships with Cadila in India, Avimex in Mexico and Rovi in Spain in order to develop pandemic flu vaccine supplies. This strategy will help the company leverage its R&D investments and get non-dilutive financing, Piper Jaffray says. NVAX is poised to benefit from the $6 billion and growing annual market for seasonal flu vaccines. The company’s stock is undervalued at present, Piper Jaffray adds.
