FangXiaNuo
Shah Capital, a top-five shareholder in Novavax (NASDAQ:NVAX), is pushing for an urgent board shake-up at the company, citing the “underperformance of the business and the current management’s failure to capitalize on its competitive advantages.”
The hedge fund, which owns approximately 6.7% of Novavax (NVAX), has nominated two independent director candidates - Suresh Katta and Venkat Peri - which it believes will help tackle the underperformance and begin maximizing value for Novavax’s (NVAX) shareholders.
In a letter sent to the board, Shah Capital said, “As a long-term strategic investor in Novavax, Shah Capital has been deeply disappointed in its performance and the failure of its leadership to realize shareholder value reflective of Novavax’s significant competitive advantages and sizeable market opportunity.”
The fund identifies ongoing operating losses, marketing failures, and questionable regulatory management among issues plaguing the company. It thus recommends Novavax (NVAX) to implement a more dynamic sales and marketing strategy, ensure effective spending, and transform Matrix-M adjuvant franchise’s inactive pipeline candidates (such as Flu, RSV, and H5N1) into active opportunities through outside capital infusion.
Katta is the founder of Saama Technologies and has been its CEO for the last 25 years, while Peri is the CEO of Quantiva Health - an AI-powered healthcare company.
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