Shah Capital increased its stake to about 8.3% and said the gap between Novavax’s scientific potential and its commercial results has become “striking.”
- Shah Capital increased its stake to about 8.3% and said the gap between Novavax’s scientific potential and its commercial results has become “striking.”
- The fund urged the board to form a committee to evaluate alternatives and hire an investment bank, saying the company’s execution and market share have fallen far short of expectations.
- Retail traders on Stocktwits voiced frustration with leadership, with some calling for shareholder coordination to support Shah’s campaign.
Novavax’s retail traders turned cautious on Stocktwits as activist investor Shah Capital escalated its campaign for sweeping changes at the vaccine maker, warning it may launch a proxy fight if the board does not act within four months.
Shah Capital Presses For A Sale
Shah Capital, Novavax’s second-largest shareholder, sent its second letter to the board in less than a month, saying it has become “increasingly disenchanted” with the company’s weak sales of its protein-based Covid-19 vaccine. In an interview, fund founder Himanshu Shah said that if he does not see progress within the next four months, “then I think that is definitely a potential for a proxy fight,” according to a Reuters report.
The fund said it still believes in Novavax’s science and has raised its stake to about 8.3%, up from 7.2% in October. However, it said it remains “at a complete loss” over the disappointing commercial performance of Novavax’s vaccine, which sold roughly 120,000 doses through Oct. 31 during the 2025–2026 season, compared with 14.5 million doses sold by two competitors over the same period.
Shah Capital said the “disconnect between potential and execution is striking,” and questioned whether Novavax and its commercial partner were showing “a profound lack of competence or intentionally underperforming.” It urged the board to immediately form a committee to evaluate strategic alternatives, including a sale, and to hire an investment bank to support the process. The fund has previously named Sanofi, Merck, GSK and AstraZeneca as potential buyers, though it said it has not contacted them.
Company Performance And Delays Add Pressure
Earlier this month, Novavax pushed back its profitability target to 2028, a year later than previously expected. Shah said the company must reduce its high cost base, deliver operational profitability next year, and conduct more comprehensive trials. He valued the company at $5 billion to $10 billion, compared with a current market capitalization of about $1.21 billion, according to LSEG data.
Stocktwits Traders Voice Frustration
On Stocktwits, retail sentiment for Novavax was ‘neutral’ amid ‘normal’ message volume.
One user argued that Novavax’s leadership had mishandled the company’s commercial and operational execution, saying the CEO should take responsibility for the company’s small market share despite having what they viewed as a strong COVID-19 vaccine.
Another user urged fellow retail investors to contact Shah Capital and state how many shares they own, saying they planned to show support for a potential sale of the company.
A third user strongly backed Shah Capital’s campaign and said they were prepared to support the activist as a shareholder, while criticizing the company’s current leadership.
Novavax’s stock has declined 10% so far in 2025.
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