Hedge Fund Shah Capital Urges Novavax To Consider Sale Amid Vaccine Rollout Struggles, Sees $5 Billion Potential

Shah Capital is reportedly pressing Novavax Inc. (NASDAQ:NVAX) to consider a sale of the biotech firm, citing continued struggles in the rollout of its COVID-19 vaccine. • NVAX stock is showing exceptional strength. View the charts here.The hedge fund holds a 7.2% stake and is the company's second-largest shareholder. The fund said in a Tuesday letter that Novavax's assets could achieve "far greater potential in the hands of a large capable pharma entity."Shah suggested that major pharmaceutical companies, including Sanofi SA (NASDAQ:SNY), Merck & Co. Inc. (NYSE:MRK), GSK Plc (NYSE:GSK), and AstraZeneca Plc (NASDAQ:AZN), could be potential buyers for Novavax.Himanshu Shah, founder and chief investment officer of Shah Capital, told Reuters the company could be valued at "at least $5 billion" based on the commercial potential of its vaccines. As per data from Benzinga Pro, Novavax has a market cap of around of $1.4 billion.Also Read: FDA Moves To Publicize Data On Pregnant Women’s Covid Vaccine Side EffectsHe also noted that political conditions and scientific data are currently favorable for the company.Last year, the fund withdrew its campaign opposing the re-election of three Novavax board members after the company finalized a licensing deal with Sanofi."The problem has been the sales," Shah said in his statement to Reuters, pointing to a series of marketing missteps that have hindered Nuvaxovid, Novavax's protein-based COVID-19 vaccine. According to the hedge fund, the shot captured just 2% of the market last season, reflecting underperformance compared with competitors.As of Oct. 2, Novavax had distributed roughly 7,000 doses of its vaccine, while rivals Pfizer Inc. (NYSE:PFE) and Moderna Inc. (NASDAQ:MRNA) each rolled out nearly six million shots, Shah noted.Novavax reported second-quarter 2025 sales of $239.24 million, compared to $415 million a year ago, beating the consensus of $156.29 million.Novavax revealed preclinical data from the H5N1 avian pandemic influenza vaccine candidate in July.Leveraging Novavax's recombinant, protein-based nanoparticle technology and Matrix-M adjuvant, the vaccine candidate induced robust immune responses in nonhuman primates after either single — or two-dose intranasal (IN) or intramuscular (IM) administration.NVAX Price Action: Novavax stock is up 3.07% at $8.89 at publication on Tuesday. Albertsons Lifts Profit Outlook, Boosts Share Buyback Photo: Shutterstock