Biotech Wednesday

Welcome to Biotech Wednesday.

Yesterday, Novavax, Inc. (NASDAQ – NVAX - $2.35) reported favorable Phase 2 trial results for its respiratory syncytial virus (RSV) vaccine candidate in women of childbearing age.  (http://finance.yahoo.com/news/novavax-reports-positive-top-line-200500539.html)

The trial accomplished the trial's protocol-specified objectives and supports progression to the next stage of advanced clinical testing.  The treatment will allow vaccinated women to naturally transfer immunization to their infants in utero, and will protect the infant during the extremely vulnerable time during exposure to severe respiratory disease due to RSV.

Novavax’s technology platform is based on proprietary recombinant vaccine technology that includes virus-like particles (VLPs) and recombinant protein micelle vaccines.  Its vaccine candidates target seasonal influenza, pandemic (H5N1) influenza, and respiratory syncytial virus (RSV). The company, through its joint venture, CPL Biologics Private Limited, engages in developing seasonal and pandemic influenza, and rabies vaccine candidates.  The company has a licensing agreement with LG Life Sciences, Ltd. to use the VLP technology to develop and sell the influenza vaccines in South Korea and other countries; and a clinical development agreement with PATH Vaccine Solutions to develop RSV vaccine candidate.

The company expects revenue growth to increase to 25% over the next two years.  Additionally, it has over $40 million in cash.  These two factors combined with the fact that developmentally, the wind is at its back, make NVAX an attractive buy in this space.

We like the $4.00 sometime this quarter.

Have a great day!

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.

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