Novavax should have used mRNA vaccine fears for COVID-19, investor says – Quartz

The activist hedge fund Shah Capital blasted the leadership of Novavax for not leveraging concerns some people have about mRNA vaccines to boost sales of its own traditional, protein-based COVID-19 vaccine.

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The fund, founded and led by Himanshu H. Shah, called for an urgent shake-up of the companys board and suggested that the vaccine maker directly market its product to people who are unwilling to take mRNA vaccinesspecifically people over 60 and who live in southern U.S. states.

While there continues to be an elevated level of debate as to the root cause of these adverse mRNA reactions, a sizeable portion of our population has become afraid and is unfortunately making the decision to forego receiving a Covid vaccine, Shah Capital said in the letter, obtained by MarketWatch.

A survey of 1,500 Americans from the Annenberg Public Policy Center (APPC) at the University of Pennsylvania found that vaccine misinformation is on the rise.

In November, about 12% of respondents falsely believed that the mRNA COVID-19 vaccines cause cancer, up from 9% in January of that year.

For its part, Novavax said in a statement emailed to Quartz, We are confident that the actions we are taking are the right ones to drive long-term sustainable growth and create value for all our stakeholders. We welcome the perspectives of our shareholders and value their input on our strategy.

The U.S. Food and Drug Administration approved the use of Novavaxs COVID-19 vaccine in 2022, a year after approving Moderna and Pfizers mRNA shots.

Novavax sales and stock have tumbled in the years since. The companys revenue in 2023 fell 65% to $531 million, down from $1.5 billion in 2022. Its stock has dropped 55% over the past 12 months.

Limited COVID-19 vaccine usage has been dragging down other vaccine makers as well. In the U.S., only 14% of adults have received an updated 2023-2024 COVID-19 vaccine, according to the Centers for Disease Control and Prevention.

Moderna stock is down 27% over the past 12 months, while Pfizer stock fell 36% during the same period.

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Novavax should have used mRNA vaccine fears for COVID-19, investor says - Quartz