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Investment Thesis
Despite a much-awaited change in the executive team and a new CEO since January 2023, a promising Sanofi partnership and a revenue jump in the first quarter of this year, Novavax, Inc. (NASDAQ:NVAX) continues
Despite Revenue Jump, Novavax Appears Immune To Long-Term Growth
Summary
- Novavax's recent revenue surge is due to one-off events, not sustainable growth, making current valuation metrics misleading.
- The business remains overly dependent on Sanofi, with limited pipeline progress and no near-term growth catalysts outside COVID/flu vaccines.
- Management continues to cut R&D spending, hindering future innovation and reinforcing reliance on royalties from Sanofi partnerships.
- Despite improved fundamentals from Sanofi's lifeline, I rate Novavax a Sell due to its shortsighted strategy and lack of clear growth prospects.
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