Novavax Shares Fall as FDA Halts Vaccine Trials

The U.S. Food and Drug Administration (FDA) has halted the trial of Novavax's experimental COVID-19 and influenza combination vaccine and standalone flu shot after a participant reported motor neuropathy, a nerve damage disorder, in a phase two trial. Novavax Chief Medical Officer, Robert Walker, stated there is no established causality, but the company is working closely with the FDA to resolve the issue and aims to begin phase three trials soon. This clinical hold has caused Novavax's stock to plummet by nearly 20%, erasing significant market capitalization and raising concerns about its partnership with Sanofi. Analysts have noted that motor neuropathy was not previously observed in older trials of Novavax's vaccines. Despite the setback, Novavax maintains that its current COVID-19 vaccine is safe and not impacted by the FDA's decision. The company had previously signed a $1.2 billion deal with Sanofi for vaccine development, which Sanofi asserts remains unaffected by the FDA's hold.