Welcome recent announcements Novavax (Nasdaq: ) licensing agreement Sanofi (NASDAQ: )
Highlights that Novavax still has a lot of value to be unlocked
Still confident Novavax will benefit from the addition of shareholder representatives
RALEIGH, N.C., May 20, 2024 (GLOBE NEWSWIRE) — Shah Capital Management, Inc. (together with its affiliates Shah Capital, us or ours) collectively beneficially owns approximately 7.9% of the outstanding shares of Novavax, Inc. (NASDAQ: NVAX) (Novavax or the Company), making it Top three and largest non-index shareholderstoday issued the following statement to shareholders regarding its anticipated efforts at its 2024 Annual Meeting of Stockholders (2024 Annual Meeting) scheduled for Thursday, June 13, 2024, at 8:30 a.m. ET:
Dear Novavax shareholders:
As long-term strategic investors, we have been engaged with the Novavax Board of Directors (Board of Directors) for over a year in an attempt to unlock value on behalf of all of its shareholders, so it is exciting that our activities have begun to yield positive results. We have long advocated for Novavax to explore potential strategic collaboration opportunities and believe the company’s recent announcement of a co-exclusive licensing agreement with Sanofi is a long-awaited step in the right direction.
Unfortunately, however, it was our activities that prompted the board to take action. We believe the board presided over a number of huge strategic mistakes, including a huge marketing failure in the 2023-2024 season, the inability of time and money to invest in artificial intelligence technology to effectively improve vaccine research efforts, questionable regulatory management and continued operating losses in 2023 and 2023. Large-scale issuance of dilutive shares at low prices. It takes time to put the cuts in place.
However, we do acknowledge that good progress is now finally being made, which is why we have decided to withdraw our proxy campaign against Novavax’s re-election of directors at its 2024 annual meeting. But that doesn’t mean our collaboration ends here. We will continue to keep a close eye on the company, including its operations and especially marketing, as we believe there is still plenty of additional value to be unlocked in Novavax.
We also continue to believe Novavax would benefit from adding a shareholder representative to the board, which is one of the main reasons we think the company ended up in such bad shape and it’s important to address this issue.
We also reiterate our position that Novavax must pursue an aggressive, patient-driven sales and marketing strategy that leverages the numerous peer-reviewed scientific papers showing inferior efficacy and safety of competing vaccines.
At the heart of our activity is our hope that Novavax’s family of scientifically proven protein vaccines will play a significant role globally, leading to continued profitable growth, and we will follow their progress closely. We are grateful to the thousands of shareholders who supported Shah Capital’s campaign and shared with us their concerns about the direction of the company. Together we help Novavax achieve real change.
Sincerely,
Shah Capital Management
About Shah Capital:
Shah Capital is a global investment firm with a focused investment philosophy that emphasizes turnarounds and special situations.
Media contact:
| Citigate Dewe RogersonShah Capital Team | shahcapital@citigatedewrogerson.com |
Source: Shah Capital
