A top-five shareholder in struggling Covid-19 vaccine maker Novavax is calling for an “urgent shake-up” of the board and an overhaul of its sales strategy, as the stock is down 99 per cent from its pandemic peak.
US-based hedge fund Shah Capital wrote to the Novavax board on Monday to push for the instalment of two new independent board directors. It also wants a pivot in the biotech’s sales strategy for its Covid-19 shot, which is based on traditional vaccine technology, to target older people unnerved by rare side effects associated with mRNA jabs from Pfizer and Moderna.
Valued at more than $40bn at the height of the pandemic in early 2021, Novavax made a series of mis-steps with the launch of its Covid vaccine. The jab was late to market and suffered from collapsing demand as governments withdrew from procurement deals. The group had a market value of $600mn, as of market close on Friday.