Shah Capital urges Novavax shareholders to vote against three directors

May 6 (Reuters) - Hedge money Shah Capital connected Monday urged Novavax shareholders to ballot against the re-election of 3 directors and proposals related to enforcement compensation, weeks aft pushing for a committee shakeup astatine the COVID-19 vaccine maker.

Shah Capital, the biotech's third-largest shareholder with a adjacent 7.5% stake, reiterated that the institution was "undervalued and continues to endure from mediocre profitability".

Novavax past twelvemonth had raised doubts astir its quality to stay successful business, wounded by manufacturing snags and regulatory hurdles that delayed the introduction of its protein-based vaccine to the market.

Last month, Shah Capital had expressed concerns implicit mismanagement astatine the Maryland-based biotech and urged it to follow a selling strategy to people consumers who are hesitant to person mRNA vaccines.

Shah Capital had antecedently said it plans to enactment guardant 2 of its ain candidates for assignment to Novavax's board, but did not formally taxable immoderate nominations.

Novavax said successful a proxy filing past week that it had not received immoderate valid nominations from stockholders for its 2024 yearly shareholder meeting, scheduled to instrumentality spot connected June 13.

The hedge money said connected Monday that it plans to ballot against directors Richard Douglas, Margaret McGlynn and David Mott astatine Novavax's shareholder gathering successful June.

"We judge that caller perspectives are desperately needed successful the boardroom to steer Novavax towards sustainable profitable growth," it said successful a statement.

McGlynn and Mott person served connected Novavax's committee since 2020 and Douglas since 2010.

Novavax said it welcomes the perspectives of its shareholders and values their input.

"We judge we person the close committee successful spot to oversee Novavax's strategy," the institution said successful its response.

Shah Capital besides plans to ballot against 3 different proposals, including 1 related to the compensation of immoderate of Novavax's executives. (Reporting by Bhanvi Satija successful Bengaluru; Editing by Shilpi Majumdar)

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Published: 06 May 2024, 11:19 PM IST