Hedge Fund Shah Capital Urges Novavax To Consider Sale Amid Vaccine Rollout Struggles, Sees $5 Billion Potential

Core Viewpoint - Shah Capital is urging Novavax Inc. to consider a sale due to ongoing challenges in the rollout of its COVID-19 vaccine, suggesting that its assets could be more valuable in the hands of a larger pharmaceutical company [1][2]. Company Performance - Novavax's stock is showing strong performance, with a current price of $8.89, reflecting a 3.07% increase [7]. - The company has a market capitalization of approximately $1.4 billion, while Shah Capital estimates its value could be "at least $5 billion" based on the potential of its vaccines [3]. Market Position - Novavax's COVID-19 vaccine, Nuvaxovid, has only captured 2% of the market, significantly underperforming compared to competitors like Pfizer and Moderna, which distributed nearly six million doses each [5][6]. - In the second quarter of 2025, Novavax reported sales of $239.24 million, a decrease from $415 million a year ago, but exceeding the consensus estimate of $156.29 million [6]. Strategic Insights - Shah Capital holds a 7.2% stake in Novavax, making it the second-largest shareholder, and has identified potential buyers among major pharmaceutical companies such as Sanofi, Merck, GSK, and AstraZeneca [2]. - The hedge fund noted that favorable political conditions and scientific data could benefit Novavax moving forward [4].