What happened
Shares of Novavax (NVAX 4.52%) were slipping 3% as of 11:21 a.m. ET on Monday after falling as much as 6.3% earlier in the day. The decline appeared to be linked to a disappointing uptake for the company's COVID-19 vaccine in Germany.
European news organization The Local reported Monday morning that Germans who are skeptical about vaccination haven't been won over by Novavax's vaccine, branded as Nuvaxovid. When Novavax secured European Commission approval for Nuvaxovid, some predicted that the availability of a protein vaccine would be more appealing to individuals who were hesitant to receive a messenger RNA or DNA vaccine.
Close to 4 million doses of Nuvaxovid have been delivered to Germany. However, German TV news program Tagesschau stated last week that only around 40,000 people have received the vaccine nationwide so far.
So what
Any real or perceived hesitancy by Germans to be vaccinated with Nuvaxovid doesn't change the existing supply deal that Novavax already has in Europe. So why did the vaccine stock falter today? Investors could be worried that the European Union won't order additional doses of Novavax's vaccine.
In August 2021, Novavax finalized a supply agreement with the European Commission to supply 100 million doses of Nuvaxovid. That agreement included an option for an additional 100 million doses to be purchased through 2023. If fewer doses are used from the initial order, there's a lower likelihood that the European Commission will need to exercise its option to buy more doses.
However, it's premature to worry too much about the slow uptake in Germany. Novavax still has opportunities in the future for its vaccine as a booster.
Image source: Getty Images.
Now what
The main thing to watch with Novavax right now isn't what happens in Germany or other parts of Europe. Instead, the company's next major development could be on this side of the Atlantic. Novavax awaits a key decision by the U.S. Food and Drug Administration on Emergency Use Authorization of Nuvaxovid.
