Novavax (NASDAQ:NVAX) investors shouldn’t be concerned with the company losing COVID-19 vaccines intellectual property rights despite the Biden administration announcing that its supports a waiver in negotiations with WTO.
Interestingly, President Biden’s declaration is a position the administration is talking about at the negotiations with WTO and it is not a verdict or law in a patent case. Therefore, Novavax will not lose anything considering any WTO agreement will require the consent of all 164 member states.
However, allowing generic competition doesn’t solve the administration’s main stumbling block which is COVID-19 vaccine distribution. According to Novavax, the main challenge currently is sluggish regulatory approval, manufacturing issues, and distribution. The company has contracts to supply 1.4 billion doses of its COVID-19 vaccine with more than 11 billion of the doses going to developing countries at the subsidized price. Novavax has been ramping up manufacturing to meet the demand.
Novavax has faced bottlenecks in terms of raw materials used to make its adjuvant, Matrix-M because the US government block export of important raw material. This stock is worth keeping an eye on in the coming weeks.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.