NEW YORK (TheStreet) -- Shares of Novavax Inc. (NVAX) are up 8.12% to $4.26 in pre-market trade after the clinical stage biopharmaceutical company said its respiratory ailment vaccine candidate for women of childbearing age in a Phase 2 study showed positive results, the Wall Street Journal reports.
The company said the data permit selection of vaccine formulation and regimen for a planned Phase 2 clinical trial in pregnant women, currently projected for the fourth quarter.
The vaccine aims to prevent respiratory syncytial virus, or RSV, infections, a common cause of childhood respiratory infections.
TheStreet Ratings team rates NOVAVAX INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NOVAVAX INC (NVAX) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 74.9% when compared to the same quarter one year ago, falling from -$8.04 million to -$14.05 million.
- Net operating cash flow has significantly decreased to -$12.26 million or 199.82% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- NOVAVAX INC's earnings per share declined by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, NOVAVAX INC reported poor results of -$0.31 versus -$0.22 in the prior year. This year, the market expects an improvement in earnings (-$0.30 versus -$0.31).
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Biotechnology industry and the overall market, NOVAVAX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for NOVAVAX INC is currently very high, coming in at 81.16%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -160.65% is in-line with the industry average.
- You can view the full analysis from the report here: NVAX Ratings Report