SNY - Novavax: Sanofi Partnership Revitalizes My Magnum Opus
2024-05-12 13:07:18 ET
Summary
- Novavax announced Q1 2024 results with a beat on EPS and a miss on revenue, causing a surge in premarket trading.
- Novavax finalized a licensing agreement with Sanofi worth up to $1.2B, boosting its COVID-19 vaccine commercial performance.
- The Sanofi deal revitalizes the outlook for Novavax, providing immediate cash infusion, long-term revenue streams, and a narrowed focus.
Novavax ( NVAX ) has just announced mixed Q1 2024 earnings with a beat on EPS and a miss on revenue. NVAX surged by around 175% in premarket trading as investors applauded that their net loss narrowed by around 50% year-over-year to $148M, thanks to a 16% increase in revenue. In addition, investors were relieved to see the removal of the company’s going concern notice in the 10-Q, which was one of the geneses of the ticker’s relentless sell-off. However, I believe the primary cause of the spike in share price was thanks to Novavax finalizing a licensing agreement with Sanofi ( SNY ) worth up to $1.2B, to boost its COVID-19 vaccine commercial performance and Novavax’s Matrix-M adjuvant. I was elated to see the Sanofi news after waiting over three years for one of the big vaccine firms who sat out of the COVID-19 vaccine race to choose Novavax. Back then, NVAX was “ My Magnum Opus Investment Idea ” as it rocketed 6000% from my previous article due to investors bidding up anything related to the pandemic. Well, Novavax did not secure a big-name partnership to take over its commercialization efforts and the bigger names with inside connections got preferential treatment from every organization associated with the pandemic response. Now my NVAX bull thesis has been revitalized, forcing me to reassess my dormant position....
Novavax: Sanofi Partnership Revitalizes My Magnum Opus