Shares of COVID-19 vaccine maker Novavax cratered Tuesday as the U.S. biotech company slashed its sales forecast due to a slump in demand for its shots. The company’s stock dived 31% after it cut its 2022 sales outlook in half.
Novavax’s protein-based vaccine was a latecomer to the market. It was authorized by the Food and Drug Administration for use by adults in the U.S. only last month, long after a majority of adults had already been vaccinated with Pfizer, Moderna or Johnson & Johnson shots. Only 7,381 Novavax vaccine doses have been administered in the U.S., government data shows.
The company alluded to softening demand for the COVID-19 vaccine in its earnings call Monday. Novavax CEO Stanley Erck said that hurdles in getting approval to administer booster shots and first doses to younger Americans have also hurt sales, as these applications are the company’s best bet for finding a market. The Novavax COVID-19 vaccine has not been authorized by the FDA for use as a booster vaccination.