Stock Alert for Novavax Inc. (NVAX)(D*)

Novavax Inc. (NASDAQ: NVAX)(D*)

* Financial status indicator is deficient: Issuer failed to meet NASDAQ continued listing requirements.

Novavax Inc. (NVAX) is a clinical-stage biopharmaceutical company focused on creating differentiated, value-added vaccines that improve upon preventive options for a range of infectious diseases. These vaccines leverage its virus-like particle (VLP) platform technology coupled with a disposable production technology. VLPs are genetically engineered three-dimensional nanostructures, which incorporate immunologically important lipids and recombinant proteins. NVAX’s VLPs resemble the virus but lack the genetic material to replicate the virus. Its production technology uses insect cells rather than chicken eggs or mammalian cells. The Company’s product targets include vaccines against the H5N1 and other subtypes of avian influenza with pandemic potential, human seasonal influenza, Varicella Zoster, which causes shingles, and respiratory syncytial virus (RSV). This RSV vaccine was announced on October 30, 2008. The Company also has a joint venture with Cadila Pharmaceuticals Ltd. to develop and commercialize seasonal influenza virus-like-particle-based vaccine candidates and therapeutic vaccine candidates against cancer, as well as adjuvants, biogeneric products, and other diagnostic products for the territory of India. It also has a strategic collaboration  with Xcellerex Inc. for the production of 2009 H1N1 influenza vaccine.

Novavax Inc. was founded in 1987 and is headquartered in Rockville, Maryland.

Share Statistics (10-June-10)			FY 2007	FY 2008	% Chg	Q4 2008	Q4 2009	% Chg
Symbol	NVAX	Revenue, $Mn	1.46M	1.06M	27.4%	0.07M	0.08M	12.5%
Current price	$2.20	Gross marg.	100.0%	n/a	n/a	n/a	n/a	n/a
52wk Range:	$7.79-01.92	Oper. margin	-2000.7%	-3345.7%	67.2%	n/a	-20214%	n/a
Avg Vol (3m):	1,509,890	Net margin	-2381.5%	-3400.9%	42.8%	n/a	-17450%	n/a
Market Cap.	221.07M
Dil. Shares Outst.	100.5M	EPS, $	-0.47	-0.53	-68.2%	-0.15	-0.14	6.6%

Source: Reuters.com, SEC Filings.

Financial Summary

NVAX reported a net loss of $11.4 million, or $0.11 per share, for the first quarter of 2010 compared to a net loss of $8.3 million, or $0.12 per share, for the first quarter of 2009. The primary reason for the increased loss for the first quarter of 2010 as compared to the same period in 2009 was due to higher research and development spending to support the company’s clinical trials related to its seasonal and H1N1 influenza vaccine candidates. Research and development expenses for the first quarter of 2010 increased by $4.7 million to $9.0 million as compared to $4.3 million in the same period in 2009. General and administrative expenses for the first quarter of 2010 decreased by $0.4 million to $2.5 million as compared to $2.9 million in the same period in 2009.

As of March 31, 2010, the Company had $32.9 million in cash, cash equivalents and short-term investments compared to $43.0 million as of December 31, 2009.

Financial Strength (10-Jun-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	3.66	3.79	2.10	0.81
Current Ratio (MRQ)	3.66	4.10	2.51	0.96
Long-Term Debt to Equity (MRQ)	0.60	15.69	18.62	133.31
Total Debt to Equity (MRQ)	0.73	20.37	23.95	199.02

Source: Reuters.com, SEC Filings.

Analyst Consensus

Buy

Outperform

Hold

Underperform

Sell

No Opinion

This is the consensus forecast amongst four polled investment analysts. Against the Novavax Inc company.

Analyst Detail	Buy	Outperform	Hold	Underperform	Sell	No Opinion
Latest	2	2	0	0	0	0
4 weeks ago	2	1	0	0	0	0
2 months ago	1	1	0	0	0	0
3 months ago	2	1	0	0	0	0
Last year	1	1	0	0	0	0

The four analysts offering 12-month price targets for NVAX have a median target of 4.63, with a high estimate of 8.00 and a low estimate of 4.00. The median estimate represents a 112.16% increase from the last price of 2.18.

Source: www.ft.com

Consensus Estimates Analysis

	# of Estimates	Mean	High	Low	1 Year Ago
SALES (in millions)
Quarter Ending Jun-10	4	0.12	0.20	0.08	0.02
Quarter Ending Sep-10	4	0.60	2.10	0.08	0.02
Year Ending Dec-10	4	1.40	4.71	0.20	0.08
Year Ending Dec-11	3	7.64	15.91	0.30	0.08
EARNINGS (per share)
Quarter Ending Jun-10	4	-0.10	-0.08	-0.12	-0.12
Quarter Ending Sep-10	4	-0.09	-0.08	-0.12	-0.11
Year Ending Dec-10	4	-0.41	-0.36	-0.46	-0.45
Year Ending Dec-11	4	-0.35	-0.32	-0.40	-0.44
LT Growth Rate (%)	1	0.00	0.00	0.00	–

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=NVAX.W

Investment Highlights

First Quarter 2010 Accomplishments

NVAX recently reported the following product and corporate developments:

-Report of positive results from 1,000-subject first stage of H1N1 influenza vaccine trial in Mexico;

-Completion of enrollment of more than 3,500 subjects in second stage of H1N1 influenza vaccine trial in Mexico;

-Report of additional positive results from trial of trivalent seasonal influenza vaccine in healthy adults;

-Report of positive pre-clinical results for the Company’s vaccine candidate to prevent RSV; and

-Election of Stanley C. Erck as executive chairman of the board of directors and appointment of Dr. James Young, former president of Research and Development at MedImmune, as an independent board member.

CPL Biologicals, a joint venture of Cadila Pharmaceuticals Ltd. and NVAX, recently announced that it has completed construction of its vaccine facility in Dholka, India, and will commence equipment and installation validation this month so that the facility conforms to global standards for production of vaccines for human use.

The facility plans to produce seasonal and pandemic flu vaccines based on NVAX’s advanced virus-like particle (VLP) technology that enables the rapid development and production of novel vaccines without the use of live virus.

NVAX also recently announced the appointment of Mark O. Thornton, M.D., M.P.H., Ph.D., as the Company’s senior vice president, development and chief medical officer. Before joining NVAX, Dr. Thornton was a medical officer in the U.S. Navy and the U.S. Food and Drug Administration’s (FDA) immunology and infectious diseases branch and division of therapeutic biologic oncology products, chief medical officer of ZioPharm Oncology Inc., managing director of clinical and regulatory affairs at Angiotech Pharmaceuticals, Inc. and, most recently, senior vice president of product development at GenVec Inc. He has also previously served as director of clinical research at Otsuka America Pharmaceutical Inc. and North American Vaccine Co. and associate director of clinical research at Univax Biologics Inc. He is a member of the Johns Hopkins Medical and Surgical Society, the American Society for Microbiology, the Infectious Disease Society of America and the American Society of Clinical Oncology.

Source: http://www.novavax.com/

Technical Analysis

Source: http://stockcharts.com

NVAX is below its 13-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

NVAX is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

The MACD for NVAX currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of zero, which implies that the underlying moving averages are trending lower.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jun-10-2010	symbol	Share, $	$ Mn	2010	2011	2010	2011
Celldex Therapeutics Inc.	CLDX	4.76	151.27M	n/a	n/a	10.76	n/a
BioSante Pharmaceuticals Inc.	BPAX	1.90	121.71M	n/a	n/a	96.75	n/a
King Pharmaceuticals Inc.	KG	7.79	1.94B	18.04	n/a	1.11	n/a
Drug Manufacturers Median			737.66M	n/a	n/a	36.20	n/a
Novavax Inc.	NVAX	2.20	221.07M	n/a	n/a	686.41	n/a

Source: Thomson Financial

http://www.thomson.com/financial/financial.jsp

Insider Trading Activity

NET SHARES PURCHASE ACTIVITY Inside Purchases – Last 6 Months
	Shares	Transaction
Purchases	n/a	0
Sales	n/a	0
Net Shares Purchased (Sold)	n/a	0
Total Insider Shares Held	13.81M	n/a
% Net Shares Purchased (Sold)	0.0%	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	(4,585,920)
% Change in Institutional Shares Held	(17.3%)

http://www.thomson.com/financial/financial.jsp

Source: Yahoo Finance

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