US-based Hedge fund Shah Capital urges Novavax board shake-up: Report

US-based hedge fund Shah Capital wrote to the Novavax board on Monday to push for the instalment of two new independent directors, the Financial Times reported on Monday.

 

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 unnerved by rare side effects associated with mRNA jabs from Pfizer and Moderna, FT reported, citing a letter.

 

The hedge fund called for Suresh Katta and Venkat Peri, who are chief executives of other biotech firms, to be nominated for the independent board roles, FT said. Shah Capital owns 6.7 per cent of Novavax.

 

Shah Capital and Novavax did not immediately respond to Reuters requests for comment.

 

The hedge fund wants Novavax to strike royalties’ partnerships for funding to resume clinical studies into other vaccines for influenza, respiratory syncytial virus and H5N1 bird flu, FT said.

 

Himanshu Shah, managing partner of Shah Capital, said Novavax’s failure to compete for market share among Covid-19 jabs as the disease has become endemic was “self-inflicted” and resulted from “reactive leadership and outdated and old-fashioned marketing”, the newspaper reported.

First Published: Apr 15 2024 | 10:50 AM IST