(Reuters) – U.S.-based hedge fund Shah Capital on Monday recommended the appointment of two new independent directors to the Novavax board.
The hedge fund named Suresh Katta, founder and CEO of biotech firm Saama and Venkat Peri, CEO of AI-based healthcare company Quantiva Health, to be nominated for the independent board roles.
Shah Capital, which owns 6.7% of Novavax’s outstanding common stock, said that the low share price reflects the board and management’s failure to capitalize on Novavax’s competitive advantages.
Novavax, which is now trading at a near record low, is one of the most shorted stocks on the Nasdaq, the hedge fund said.
Shah Capital also wants a pivot in the biotech company’s sales strategy for its Covid-19 shot, which is based on traditional vaccine technology, to target older people.
“The Board of Directors and management team of Novavax are committed to creating long-term value for stakeholders and improving global public health by advancing protein-based vaccines,” Novavax said.
Its shares are currently 3.3% higher at $4.42 in premarket trade.
(Reporting by Disha Mishra and Sriparna Roy in Bengaluru; Editing by Mrigank Dhaniwala and Ravi Prakash Kumar)
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