Citi starts Novavax with "sell/high risk" rating on shrinking vaccine market

Brokerage Citi Research starts coverage on vaccine maker Novavax NVAX.O with "sell/high risk" rating and $6 PT

PT represents a near 15% downside to the stock's last close

Brokerage says Novavax is too focused on respiratory vaccines, a market that's seeing declining vaccination rates

The COVID-19 vaccine market is shrinking yearly (10% decline overall, 12% decline in under-65 segment), brokerage says

Brokerage also flags competition for NVAX in the respiratory vaccine space from established players such as Pfizer PFE.N, Moderna MRNA.O and GSK GSK.L

Brokerage raises concerns for NVAX since FDA approved Novavax's COVID vaccine (Nuvaxovid) only for adults 65+ and high-risk individuals 12-64 years old, unlike Pfizer and Moderna vaccines which don't face these restrictions

"We think this is worthwhile noting, given it provides perhaps the first concrete example of Robert Kennedy Jr’s/Marty Makary's FDA and its views on COVID vaccination" - Citi Research

As of last close, NVAX stock down 12.6% YTD